CoinDCX's India entity FY21 profit jumps nine-fold to Rs 4.36 crore, revenue rises to Rs 38.91 crore
While the company's overall expenses increased to over Rs 40 crore from Rs 5.71 crore in FY20, personnel costs also increased to over Rs 11.69 crore from Rs 3.98 crore
By Shashank Bhardwaj
Neblio Technologies, an Indian subsidiary of crypto trading platform CoinDCX, increased its earnings after tax from FY20's Rs 45.63 lakh to Rs 4.36 crore in FY21. This follows the sharp increase in trading activity among crypto exchanges last year, at the height of the market.
In FY21, operations' revenue increased more than six times to Rs 38.91 crore. The exchange generated Rs 6.23 crore in revenue in FY20. While the company's overall expenses increased to over Rs 40 crore from Rs 5.71 crore in FY20, personnel costs also increased to over Rs 11.69 crore from Rs 3.98 crore.
Notably, CoinDCX also entered the unicorn club last year. Startups valued at more than $1 billion are known as unicorns.
CoinDCX doubled its valuation to $2.15 billion earlier this year by raising $135.9 million (about Rs 1,000 crore) from investors coordinated by Pantera Capital and Steadview Capital.
The Supreme Court's decision to overturn the Reserve Bank of India's 2020 circular, which prohibited financial institutions from offering banking services to crypto exchanges, is most likely what caused the price to increase. After the highest court's decision, India's emerging crypto industry received a new lease on life, which led to a significant injection of funds into the businesses. Due to this, private enterprises related to crypto trading services with a market value of above $1 billion, such as CoinDCX, became unicorns in 2021.
Millions of customers, mostly young people, joined crypto exchanges last year hoping to make quick money, but this year, due to the crypto market fall, taxes, and TDS, exchange volumes are drastically declining.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash