Is CoinDCX going public? India’s crypto unicorn ponders IPO

Is CoinDCX — India’s first crypto company to achieve unicorn status, or US$1 billion in valuation — going public?

CoinDCX co-founder Neeraj Khandelwal set off a frenzy of excitement when he told Bloomberg in a recent interview that CoinDCX may pursue an initial public offering as soon as legislation permits. But a CoinDCX spokesperson told Forkast.News today that an IPO “is not something we are actively pursuing at the moment.”

Fast facts

• According to Khandelwal, an IPO can help provide legitimacy to the crypto industry in India, much like how Coinbase’s listing earlier this year on the Nasdaq stock exchange boosted investor confidence. The exact timeline for the IPO would depend on the regulations that are yet to be introduced, Khandelwal said.

• Soon after the interview, CoinDCX said in a statement to local media that while the company is exploring an IPO as an avenue for growth like any other startup would, “there is no definitive route or clause” as to when the company may actually go public and the company does not have an immediate plan for it.

• In an email statement to Forkast.news, a CoinDCX spokesperson said: “While we aspire to one day hold an IPO, this is a long-term goal for CoinDCX and is not something that we are actively pursuing at this moment. Of course, a well-defined regulatory process in the country will benefit not only us but the entire ecosystem in their growth strategy.” In the short term, CoinDCX is focusing on strengthening its current offerings and increasing its customer base, the statement added. Founded in 2018, CoinDCX — which has 3.5 million customers as of August this year — offers crypto trading as well as investment and lending products.

• Khandelwal’s comments come at a time when the Indian government is at the brink of introducing legislation that is aiming to ban all private cryptocurrencies while laying the framework for a central bank digital currency. India’s crypto bill is listed in the parliamentary agenda for the ongoing winter session but it is yet to be called for discussion or released to the public.

• At the parliamentary session today, finance minister Nirmala Sitharaman said that cryptocurrencies are a “risky area.” She added: “No decision was taken on banning its advisements. Steps are taken to create awareness through RBI (Reserve Bank of India) and SEBI (Securities and Exchange Board of India). Government will soon introduce a bill.”

• While the Indian crypto community is on edge about what the crypto bill might entail, Khandelwal said he was hopeful that the legislation would help provide certainty to crypto businesses and investors alike. Like ZebPay co-CEO Avinash Shekhar, who predicted last week that India might impose strict regulations rather than an outright ban, Khandelwal is also optimistic that the legislation would be beneficial for the crypto community. In fact, Khandelwal and Shekhar’s sentiments echo those of most crypto exchanges. For instance, despite the regulatory clouds over the industry and the chance of a ban, Singapore-based Coinstore is expanding its operations to India. Coinstore’s move came three months after CrossTower entered India.