American billionaire investor Tim Draper has made a significant investment in the Indian cryptocurrency exchange firm, Unocoin. The investment round, totaling $5 million, was led by Draper Associates, Tim Draper’s venture capital firm, along with participation from XBTO Ventures and 2020 Ventures. This investment has propelled Unocoin’s valuation to $20 million.

Unocoin’s Expansion Plans

Positioning itself as India’s pioneering cryptocurrency exchange, Unocoin aims to expand its offerings in the wake of the Reserve Bank of India’s (RBI) decision to lift the ban on digital asset trading. Sathvik Vishwanath, CEO of Unocoin, highlighted the surge in crypto adoption in India following the lifting of the ban imposed by the RBI in 2018. Vishwanath noted a remarkable increase in customer growth rates and trading volume post the Supreme Court verdict.

Utilization of Funds

With the infusion of funds, Unocoin plans to scale its operations, bolster its technology team, and enhance its product infrastructure. Vishwanath emphasized that the funding would enable the company to augment its platform’s features and offerings, thereby improving overall usability and functionality for its customers.

Tim Draper’s Perspective

Tim Draper, renowned for his investments in tech giants like Skype, Tesla, SpaceX, and Twitter, expressed his enthusiasm for backing Unocoin. Draper emphasized the importance of every Indian having a Bitcoin account with Unocoin, citing it as a favorable method for conducting business in a currency resistant to devaluation over time.

Draper’s History with India

Draper’s involvement with India extends beyond his recent investment in Unocoin. Previously, his venture capital firm, Draper Fisher Jurvetson, had an Indian arm that invested in notable companies like Cleartrip and electric vehicle manufacturer Reva. However, Draper exited the Indian market in 2016 after selling the entire portfolio to Hong Kong-based NewQuest Capital Partners.

Tim Draper’s investment in Unocoin signals confidence in India’s burgeoning cryptocurrency market and underscores the growing global interest in digital assets.