Imagine this: You quit your cushy job at Sony Japan. You use up all your savings to start a crypto exchange. And just weeks before launching, the Reserve Bank of India bans banks from dealing with cryptocurrency companies.
Most people would've given up right there. Sumit Gupta and Neeraj Khandelwal? They built India's first crypto unicorn instead.
This is the story of CoinDCX—a company that launched during the worst possible time, survived a regulatory nightmare, and ended up with over 2 crore (20 million) users and a $2.45 billion valuation. And honestly? It's one of the craziest startup stories to come out of India.
Two Friends, One Crazy Dream
Let's go back to 2004. Two teenagers from small towns show up in Kota, Rajasthan—India's infamous coaching hub where lakhs of students prepare for IIT entrance exams. Sumit Gupta (from Shivpuri, Madhya Pradesh) and Neeraj Khandelwal meet in a coaching class and bond over their shared dream of getting into IIT Bombay.
They both make it. They end up in the same electrical engineering department. They attend cryptography classes together (ironic, right?). They dream about building something of their own someday.
After graduating in 2014, their paths diverge. Sumit joins Sony's headquarters in Tokyo as a software engineer. Good job, good salary, stable career ahead. But he's restless. He wants to build something.
Meanwhile, Neeraj is working at Indian startups—Holachef, Doormint—leading tech teams and learning how to scale products.
And then, in 2014, Sumit stumbles onto something that changes everything: Bitcoin.
The Spark That Started It All
Working at Sony in Tokyo, Sumit gets introduced to distributed ledger technology and blockchain. And he's hooked. He starts reading everything he can about crypto. He realizes this technology could solve massive problems in India's financial system—bringing banking to the unbanked, enabling cross-border payments, creating a transparent financial infrastructure.
But there's a problem: if you're an Indian trying to trade crypto in 2017, it's a nightmare. You need one platform to buy crypto with rupees. Another platform to trade between different coins. A third platform if you want to trade with leverage. The whole experience is fragmented, confusing, and honestly, kind of sketchy.
Sumit sees the opportunity. He contacts his old friend Neeraj. They start exploring the idea of building India's first comprehensive crypto exchange—one platform where you can do everything.
Building in a Flat, Launching into a Ban
In March 2018, they're ready. They've built an MVP (minimum viable product) working night and day from Neeraj's flat in Mumbai. They've got a small team. They've pooled together their savings—90% of the startup's initial capital comes from their own pockets. They're about to raise a seed round from investors.
And then the bomb drops.
On April 6, 2018—literally weeks after they launch—the Reserve Bank of India issues a circular. Banks are prohibited from providing services to cryptocurrency exchanges. No bank accounts. No payment processing. No way to move money in or out of crypto.
Other exchanges shut down immediately. Zebpay, one of India's biggest crypto exchanges, exits the country entirely.
Sumit and Neeraj? They're devastated. Their seed round falls apart. Investors back out. They've just used up all their savings on a business that might be illegal.
"We had almost signed documents, but then the round completely broke and we had to use almost all our savings to run it for another few months," Sumit later recalled.
Most people would've quit. But these guys had spent years preparing for IIT exams in Kota—they know how to grind through impossible situations.
The Comeback Nobody Expected
Three months later, something incredible happens. Bain Capital—a massive US investment firm—decides to take a bet on CoinDCX. In the middle of India's crypto winter, when nobody knows if crypto will even be legal, Bain Capital invests.
Why? Because Sumit and Neeraj had built something genuinely useful. Their liquidity aggregation model was solving a real problem. Instead of building their own order book from scratch, they connected to global exchanges like Binance, Huobi, and HitBTC. Indian traders could access global liquidity through one simple platform.
But it's still brutal. There's no clarity on regulations. The banking ban is in place. They're working with a skeleton team. Money is tight.
"The market was not very favorable for crypto companies," Sumit said. "But it was fine because we knew deep within our hearts that we're fighting for something which is for the long term."
They even became petitioners in the Supreme Court case challenging the RBI's banking ban. They weren't just building a company—they were fighting for an entire industry.
The Supreme Court Victory That Changed Everything
March 4, 2020. The Supreme Court of India strikes down the RBI's banking ban. Crypto is back, baby.
And CoinDCX? They're perfectly positioned to ride the wave.
The timing couldn't be better. COVID-19 hits. People are stuck at home. Bitcoin starts rallying. Suddenly, everyone in India wants to invest in crypto.
CoinDCX's growth explodes:
- August 2020 onwards: 38% month-on-month growth
- By 2021: Over 3.5 million users
- Revenue jumps from ₹6.2 crore in FY20 to ₹38.9 crore in FY21 (that's 527% growth!)
In March 2020, they close a Series A funding round of $3 million led by Polychain Capital. By May 2020, Coinbase Ventures invests. By December 2020, they raise $13.9 million in Series B.
The momentum is insane.
Becoming India's First Crypto Unicorn
August 10, 2021. CoinDCX announces a $90 million Series C funding round at a $1.1 billion valuation.
They're officially a unicorn. India's first crypto unicorn.
The round is led by Facebook co-founder Eduardo Saverin's fund, with participation from Coinbase, Pantera Capital, and other big names. The same Coinbase that invested when things looked bleak is now backing them at a billion-dollar valuation.
For context: this is a company that launched during a regulatory ban, almost ran out of money, and had to rebuild from scratch. And now? They're worth over a billion dollars.
Sumit tweets: "I am thrilled to announce @CoinDCX has become a #Unicorn—the first Indian crypto exchange to achieve this stature! Onwards & Upwards 🦄🚀🚀"
But Wait, There's More Drama
Just when you think the story's over, crypto in India gets hit again.
February 2022: The Indian government announces a 30% tax on crypto gains and a 1% TDS (tax deducted at source) on every transaction.
This is brutal. If you're a high-frequency trader making 100 trades a day, that 1% TDS adds up fast. Trading volumes across Indian exchanges drop significantly.
But CoinDCX has been through worse. They double down on compliance, build stronger relationships with regulators, and focus on education through initiatives like DCX Learn.
April 2022: Despite the tax uncertainty, they raise another $135 million in Series D, doubling their valuation to $2.15 billion. Steadview and Pantera co-lead the round.
They're not just surviving—they're thriving.
Building an Empire
By 2024-2025, CoinDCX isn't just an exchange anymore. It's an ecosystem:
The Numbers:
- Over 2 crore (20 million) registered users
- ₹37,444 crore in total spot trading volume in 2024
- ₹102 crore average daily trading volume
- 442.86% growth in VIP (high-net-worth) investors
- Over $247 million raised across 7 funding rounds
The Products:
- CoinDCX Pro: Advanced trading for professionals
- CoinDCX Go: Simple app for beginners
- Bharat Custody: India's first homegrown crypto custody solution
- INR Futures Trading: Trade futures without converting to USDT
- Web3 Mode: Access to 50,000+ tokens with INR transfers
- CoinDCX Ventures: Investing in other Web3 startups
- Okto: Their DeFi platform
The Innovation:
They're not just following trends—they're setting them. In 2024, they launched Asia's largest Web3 hackathon (Unfold'24) with over 8,700 applications. They're building the infrastructure for India's Web3 future.
The Coinbase Connection (Plot Twist!)
October 2025: Coinbase—their early investor and partner—makes another strategic investment in CoinDCX. The deal values CoinDCX at $2.45 billion.
But here's where it gets interesting. In July 2025, CoinDCX suffered a $44 million hack (a hacker posed as a recruiter and got a software engineer to install malware). Right after, rumors started flying that Coinbase might acquire CoinDCX at a reduced valuation.
Neeraj quickly shut down those rumors. Instead, Coinbase doubled down on their partnership, seeing India and the Middle East as crucial markets for crypto's future.
"India and the Middle East are set to play a big role in the future of crypto—and CoinDCX is a high-growth, financially sound business built for scale," said Shan Aggarwal, Coinbase's Chief Business Officer.
The Regulatory Tightrope Walk
Operating a crypto exchange in India is like walking a tightrope while juggling flaming torches. The regulations are unclear, constantly changing, and often contradictory.
CoinDCX has dealt with:
- RBI banking ban (2018)
- Supreme Court case (2018-2020)
- 30% crypto tax + 1% TDS (2022)
- Enforcement Directorate investigations (multiple times)
- Ongoing regulatory uncertainty
But here's what sets them apart: they don't run from regulators. Sumit Gupta actively engages with policymakers. He's a founding member of the Bharat Web3 Association. He publicly advocates for better crypto regulations.
"We will do whatever it takes to give more comfort to the regulators," Sumit has said repeatedly.
They've invested heavily in compliance:
- KYC enhancements for faster, safer onboarding
- Proof-of-reserves audits
- Partnership with Solidus Labs and Coinfirm for anti-money laundering
- Crisis preparedness drills
- Full compliance with Indian authorities
This isn't sexy. It doesn't get headlines. But it's why CoinDCX is still standing while many other exchanges have shut down or moved offshore.
The People Behind the Platform
Today, CoinDCX has over 500 employees across offices in Mumbai, Bangalore, and Delhi. They've built a culture of resilience—because everyone there knows the company's origin story.
Sumit and Neeraj aren't flashy founders. They're grinders. They're engineers who understand both technology and business. They've been friends for 20 years, since those Kota coaching days.
Sumit's been named to Fortune 40 Under 40 and Hurun India lists. But if you ask him what he'd be if not an entrepreneur, he says: "I would be a freelancer working on solving different problems, which would help me make enough money to travel around the world."
That's the vibe. These aren't people chasing unicorn status for clout. They genuinely believe crypto can bring financial inclusion to millions of Indians.
What Makes CoinDCX Different?
In a market with players like WazirX, CoinSwitch Kuber, and international giants like Binance, what makes CoinDCX stand out?
1. They're Homegrown and Accountable
Unlike foreign exchanges, CoinDCX is subject to all Indian regulations. They have physical offices. They answer to Indian authorities. For users, this means transparency and accountability.
2. User Experience
Whether you're a complete beginner or a pro trader, CoinDCX has products for you. CoinDCX Go makes buying your first Bitcoin dead simple. CoinDCX Pro gives advanced traders all the tools they need.
3. Education First
Through DCX Learn, they've created tons of educational content. They're not just trying to get people to trade—they want people to understand what they're trading.
4. They Survived
This might sound simple, but in Indian crypto, survival is an achievement. They've outlasted the banking ban, multiple crypto winters, regulatory crackdowns, and a major hack. They're still here, still growing.
The Vision: 50 Million Users
Sumit and Neeraj aren't satisfied with 20 million users. Their goal? Get 50 million Indians into crypto.
That's ambitious. But consider this: India has 1.4 billion people. The internet user base is exploding. Younger generations are tech-savvy and open to alternative investments. The middle class is growing.
If crypto becomes even 5% as big as the stock market in India, we're talking about hundreds of millions of users and trillions of dollars in value.
And CoinDCX wants to be the gateway for all of that.
The Challenges Ahead
It's not all smooth sailing. CoinDCX faces serious challenges:
Regulatory Uncertainty: India still doesn't have clear crypto laws. The government could change its stance anytime.
Competition: Binance, Kraken, and others are eyeing India. Domestic competition is fierce.
Security: After the $44 million hack, they need to prove their security is bulletproof.
Taxation: The 30% tax and 1% TDS have driven many traders to offshore exchanges. CoinDCX is lobbying to reduce the TDS to 0.01%, but there's no guarantee.
Brain Drain: Talented crypto developers are leaving India for more crypto-friendly countries.
But if anyone can navigate these challenges, it's the team that launched during a banking ban and turned it into a unicorn.
What This Story Really Teaches Us
The CoinDCX story isn't just about crypto. It's about resilience. It's about betting on yourself when everyone thinks you're crazy. It's about building during the worst possible time and coming out stronger.
Sumit and Neeraj could've quit in April 2018. They could've moved to Singapore or Dubai like so many other crypto founders. They could've pivoted to a "safer" business.
They didn't. They fought. They built. They believed.
And now, seven years later, CoinDCX is India's most valuable crypto exchange, serving over 20 million users, and shaping the future of Web3 in India.
The Bottom Line
From two friends studying cryptography at IIT Bombay to building India's first crypto unicorn, the CoinDCX story is proof that timing doesn't have to be perfect—persistence does.
They launched when crypto was banned. They built when everyone said it was impossible. They stayed when others left.
And now? They're not just surviving—they're defining what crypto looks like in India.
Whether you're into crypto or not, there's something to learn from this story. Sometimes, the worst time to start is actually the best time to start. Because if you can survive the worst, you'll absolutely dominate when things get better.
And for CoinDCX, things are definitely getting better.
Have you used CoinDCX? What's your take on crypto in India? Drop a comment below—I'd love to hear your thoughts!
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