Crypto: Despite regulatory barriers, there are many new crypto companies

Rohit Jain, the leader of newly launched CoinDCX Ventures, is inundated with pitch-decks from aspiring crypto-entrepreneurs, though the chorus of a long and harsh crypto-winter is growing stronger day by day.

“Every week we hear 20 to 30 pitches. In the last 2-3 months, where we had not even officially launched, we got close to 100 pitches every month, if not more,” Jain said. “We have closed seven investments, and two are in the final stages. ”

Untouched by a serious crypto-market crash, the Indian government imposing a high tax rate, a massive drop in trading volume, the collapse of a popular token and In the ongoing global uncertainty surrounding digital asset regulation, Indian entrepreneurs continue to launch dozens of new crypto-ventures backed of strong angel funding.

Indian tech entrepreneurs will not miss the Web 3.0 bus and are quick to find holes in the crypto ecosystem and create new products that solve investors’ problems.

“We saw that for many young Indian investors, crypto was their very first investment, but the biggest problem they faced was at the discovery stage of the trade. Therefore, we wanted a product like a small box for cryptos. The thematic baskets we offer , makes it easier to invest, ”said Srivar Harlalka, co-founder of Flippy.

The social discovery and investment platform, which is currently in beta, recently raised $ 1.15 million in its seed round led by Redstart Labs and other key investors, including Justin Caldbeck and Alex Lin.

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Another startup, KoinBasket, which recently raised $ 2 million in angel funding from Polygon’s Sandeep Nailwal, Ripple’s Nimesh Kampani and Navin Gupta, is trying to create a differentiated business in a fast-growing segment – companies offering cryptocurrencies.

“We want to speed up the mass adoption of crypto for the next billion investors. Although there are a few players providing mutual fund-like cryptocurrencies, accessing these baskets on their platforms is a nightmare due to the requirement to link exchange accounts via secret APIs. Our company makes it easy for users to access their exchange accounts using their existing login credentials without any security risk, ”said Khaleelulla Baig, co-founder and CEO of KoinBasket, a thematic investment platform.

Experts say the basic factors favor India despite the government’s hostile stance on cryptocurrencies. India will have the maximum number of Web 3.0 developers in the next 12-18 months, and in terms of markets, India was one of the fastest growing crypto markets in the world before the announcement of crypto tax.

So despite the Indian government and the RBI’s hostility to cryptocurrencies, why do Indian entrepreneurs still want to start businesses in the crypto area? “There is no right or wrong time to get started. India is too big a market to ignore. And after meeting about 40-45 fund managers, I can say that even they think the political bottlenecks will resolve themselves in 3-5 years. ” said Bharat Vivek, co-founder of Kassio, a crypto asset management platform that received $ 1.5 million in pre-seed funding from, among others, Aalto Capital.

In addition to the young IIT crowd and experienced Web 3.0 developers, a group of successful Web 2.0 entrepreneurs are also targeting Web 3.0 companies.

“For them, Web 3 has been the next major driver of innovation for many years, with the ability to deliver 10X customer experience,” says Jain.

A large number of new entrepreneurs are building global companies with a strong penchant for India to evade the whims of India’s regulatory regime.

“We want to launch a global product to cover our risks,” said Vivek de Kassio.

But most new companies have been incorporated in Singapore, Dubai or even Denmark, as in the case of Kassio, where the government has even helped connect Indian entrepreneurs with local Danish investors.

“Given the high tax rate and compliance barriers that have been introduced by Indian regulators, a kind of near ban, if I may say so, many new entrepreneurs will simply move to places like Dubai and Singapore to start crypto businesses,” said Gaurav Dahake , CEO and co-founder of BitBns.

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