NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, October 3, 2016

Bangalore-based Bitcoin start-up Unocoin has raised $1.5 million (m) in a Pre ‘Series-A’ investment round, a record high for any digital currency venture in Indian history. But while the founder’s vision is to “scale Bitcoin” to the masses and address a largely ‘unbanked’ nation, is it such a big deal really?

Well, it might appear on the surface it isn’t, except when one considers that India is a country where an estimated “50% are unbanked” due to a weak financial infrastructure according Simon Dixon, CEO ofBnkToTheFuture that has invested around £62 million (c.$80m) for professional investors, Bitcoin Capital fund manager and crypto commentator.

Along with Max Keiser, founder of Bitcoin Capital and broadcaster, Messrs Dixon and Keiser are among domestic Indian and international venture investors in this fund raise. It includes lead investor Blume Ventures, headquartered in Mumbai that played a key role in leading Unocoin’s Pre-Series A round, Adam and Tim Draper’s Boost VC, Barry Silbert’s Digital Currency Group, Mumbai Angels, ah! Ventures, andFundersClub in San Francisco. So not too shabby then.

Digital Currency Group (DCG), which is based in New York City, supports Bitcoin and blockchain companies by leveraging their insights, network and access to capital. For DCG, their latest investment in Unocoin joins the US-based investor’s global portfolio of Bitcoin and blockchain companies spanning over 80 investments in more than 25 countries.