“We hear 20 to 30 pitches every week. For the past 2-3 months, when we weren’t even officially launched, we’ve been getting close to 100 pitches every month, if not more,” said Jain. “We have closed seven investments and two are in the final phase.”
Unfazed by a serious crypto market crash, the imposition of a high tax rate by the Indian government, a massive drop in trading volumes, the collapse of a popular token and the ongoing global uncertainty over the regulation of digital assets, Indian entrepreneurs have continued to launch dozens of new crypto ventures backed by strong angel funding.
Not wanting to miss the Web 3.0 bus, Indian tech entrepreneurs are quick to find holes in the crypto ecosystem and create new products that solve investors’ problems.
“We saw that crypto was their very first investment for many young Indian investors, but the biggest problem they faced was in the discovery phase of the deal. That’s why we wanted a product like a small box for cryptos. The themed baskets we offer make it easier to invest,” said Srivar Harlalka, co-founder of Flippy.
The social discovery and investment platform currently in beta has recently raised $1.15 million in its launch round led by Redstart Labs and other key investors including Justin Caldbeck and Alex Lin.
Discover the stories that interest you
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 company in a fast-growing segment – companies offering baskets of crypto.
“We want to accelerate the mass adoption of crypto for the next billion investors. While there are a few players that offer crypto baskets similar to mutual funds, accessing these baskets on their platforms is a nightmare due to the requirement to connect exchange accounts via secret API keys. Our company makes it easy for users to access their exchange accounts with their existing credentials without any security risk,” said Khaleelulla Baig, co-founder and CEO of KoinBasket, a thematic investment platform.
Experts say the fundamentals are in favor of India despite the government’s hostile stance towards 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 crypto tax announcement.
So, despite the Indian government and RBI’s animosity towards cryptocurrencies, why do Indian entrepreneurs still want to start a business in the crypto space? “There is no right or wrong time to start. 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 within 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 the likes of Aalto Capital.
In addition to the young IIT audience and experienced Web 3.0 developers, a group of successful Web 2.0 entrepreneurs is also targeting Web 3.0 businesses.
“For them, Web 3 has been the next big driver of innovation for many years, with the ability to deliver a 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 the Indian regulatory regime.
“We are going to launch a global product to cover our risks,” says Vivek de Kassio.
But most new businesses have been established 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 hurdles put in place by Indian regulators, a sort 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.