EconomicTimes :These startups are banking on bitcoins
Founders have come together to draft regulations for the crytocurrency that is yet to be recognized by the government
CHENNAI: Ever since its creation in 2009, Bitcoin, the world's first and most popular cryptocurrency, has been in the limelight for multiple reasons. While some countries like Bolivia, Ecuador and Bangladesh have banned bitcoins, Australia and Japan are regulating it.
Today, there are almost 750 cryptocurrencies with a capitalisation of more than $104 billion. And a small but determined number of startups in India are making early moves in a market that is yet to be recognised by the government.
Sandeep Goenka had started two companies before he decided to set up Zebpay along with Saurabh Agrawal and Mahin Gupta. Drawn to bitcoins, they immersed themselves in research. In 2014, they attended a conference in the US which gave them insights into the future of bitcoins. "We started as a Bitcoin wallet and expected people's interest to be low, but every time we set targets, we surpassed them," said Goenka.
When they met investors in 2015, there was apprehension but a year later, the founders raised close to $1 million in a Series A round led by equity investor Arjun Handa, CMD and VP of Claris Life Sciences and Amit Jindal, MD of Jindal Worldwide. Zebpay has 7 lakh users and is adding a lakh every month. The startup is now looking to expand to Southeast Asia.
When Sathvik Vishwanath set up Unocoin along with Sunny Ray, Harish B V and Abhinand Kaseti, they believed in Bitcoin as the future of money despite the apprehensions surrounding cryptocurrencies in India. "Technology always precedes regulation. There were no cab-sharing guidelines before Uber. It is after the disruption and its impact on lives that the government has to look into the issues and decide if it needs regulation," said Vishwanath.
What could have led to the increasing acceptance of bitcoins is the surge in its value. From the beginning of 2017, bitcoins have touched an all-time high. In January, the currency crossed $1,000 for the first time in three years. Last month, it crossed $1500, becoming more valuable than gold, which has not touched $1500 in the last four years. Earlier this week, the combined market capitalisation of cryptocurrencies crossed $100 billion.
Vishwanath says the surge in prices has helped garner users, adding that Unocoin has 2.7 lakh users. In August 2016, the startup raised funding of $1.5 million in a Pre Series-A round from multiple investors including Blume Ventures, Mumbai Angels and Ah! Ventures along with Digital Currency Group, Boost VC, Bank to the Future, Bitcoin Capital and FundersClub.
For Blume Ventures, bitcoins presented a rare opportunity. "Bitcoin has the ability to transform the way we look at money. When we made the investment, we didn't know that this sector would become so hot. India has a large unbanked population, and is on its way to becoming digitised. With the possibilities this technology brings in cross-border remittances, it seemed like a natural reason for us to invest in a company dealing with bitcoins," said Arpit Agarwal, Blume Ventures.
Hesham Rehman was a bitcoin trader for four years before he set up Bitxoxo with Mohammed Rizwan. It now has almost 10,000 users, and the founders are in talks with investors to expand their presence.
Source -
http://timesofindia.indiatimes.com/trend-tracking/startups-banking-on-bitcoins/articleshow/59083430.cms
