CoinSwitch Parent’s FY25 Loss More Than Doubles To $37.6 Mn

Crypto exchange CoinSwitch’s Singapore-based parent entity Chain Labs Pvt Ltd’s net loss for the fiscal year ending March 2025 (FY25) widened 108% YoY to $37.6 Mn (INR 333.1 Cr) from $18.1 Mn (INR 160.3 Cr) in FY24, despite a sharp increase in operating revenue.

The startup’s revenue from operations surged 219% to $14.6 Mn (INR 129.5 Cr) during the year under review from $4.6 Mn (INR 40,8 Cr) in FY24. 

However, total revenue, including other income, was almost flat at $22.95 Mn (INR 203.3 Cr) in FY25 as against $22.42 Mn (INR 198.7 Cr) in FY24. This was due to a $8.1 Mn reversal of impairment losses on digital assets recorded in FY24. This number was nil in FY25. 

Total costs and expenses climbed 55% to $59.2 Mn (INR 524.9 Cr) during the year under review from $38.2 Mn (INR 338.3 Cr) in the previous fiscal year. A sharp increase under the head ‘other operating expenses’ to $33.6 Mn (INR 297.5 Cr) in FY25 from $10.6 Mn (INR 93.9 Cr) in the previous year offset the revenue gains.

“As Q2 FY26, we are profitable at a group level, which is a clear reflection of our discipline in scaling sustainably while preparing for the next phase of growth. The loss reflected in our consolidated financials of last year (FY25) is the outcome of strategic, long-term investments into new growth verticals. These are deliberate decisions aimed at building future-ready businesses,” the company said in a statement.

It further said that the company remain deeply committed to its community. “Via our ‘CoinSwitch Cares’ initiative, we had allocated INR 600 Cr to reward participating users. This commitment has already been reflected in our financials, reaffirming our focus on transparency”.

WazirX Heist Continues To Bleed 

During the year under review, the startup also recognised a contingent liability of $11.2 Mn (INR 98.8 Cr) related to a recovery programme launched to support users affected by a cyberheist at WazirX in July 2024. 

The programme offers compensation through rewards and revenue-sharing to users who verify their losses and migrate to the CoinSwitch platform. The final liability will depend on the volume of verified claims and user participation.

Notably, the startup also made a provision of $1.2 Mn (INR 10.9 Cr) during FY25 for loss on virtual digital assets linked to the WazirX cybersecurity breach. The loss arose from digital assets held by CoinSwitch that were affected by the incident. The amount represents management’s estimate of potential liabilities as of March 31, 2025.

During FY25, virtual digital assets worth $7.6 Mn (INR 67.6 Cr) belonging to users were impacted by the WazirX breach. CoinSwitch said that the company absorbed the financial hit and has filed legal proceedings against WazirX to recover the affected assets.

It recognised a loss of $6.4 Mn (INR 56.5 Cr) and made a provision of $1.2 Mn (INR 10.9 Cr) related to the incident. The company said it continues to monitor the matter and assess the chances of recovery.

Notably, last month, the Bombay High Court dismissed an appeal by WazirX’s operator Zanmai Labs, upholding an arbitration tribunal order that directed it to provide bank guarantees worth INR 45.38 Cr to CoinSwitch for assets frozen on the platform following the 2024 cyberattack.

Breaking Down The Expenses

Now, let’s take a look at the key expenses for the company in FY25:

Business Promotion Expenses: This was the largest contributor to the other expenses. The spending under the head increased 1,963% to $11.7 Mn (INR 103.6 Cr) from $567K (INR 5 Cr) in the previous fiscal.

Employee Benefit Expenses: The startup’s spending on employees declined 10% YoY to $22.4 Mn (INR 198.5 Cr) from $24.9 Mn (INR 220.7 Cr) in FY24.

Foreign Exchange Loss: Its expenses under this head increased 131% to $1.5 Mn (INR 13.3 Cr) from $648K (INR 5.7 Cr) in the previous fiscal.

IT Expenses: Computer and IT expenses for the company increased 11% to $4.9 Mn (INR 43.4 Cr) from $4.4 Mn (INR 38.9 Cr) in the year-ago period.

Founded in 2017 by Ashish Singhal, Govind Soni, and Vimal Sagar Tiwari, CoinSwitch started as a global crypto aggregator that allowed users to compare and trade cryptocurrencies across multiple exchanges for the best rates. 

The company entered India in 2020 with its retail-focussed platform CoinSwitch Kuber, which quickly became one of the country’s leading crypto exchanges. It later removed “Kuber” from the brand name. Notably, in 2021, it became one of India’s only two crypto unicorns, backed by investors such as Andreessen Horowitz (a16z) and Tiger Global.

In recent years, CoinSwitch has diversified beyond crypto amid India’s uncertain regulatory environment.  It launched Lemonn, a wealthtech platform that allows users to invest in stocks, mutual funds, and IPOs. 

The startup now operates under its parent brand PeepalCo, which oversees both CoinSwitch and Lemonn as independent entities. Notably, PeepalCo itself operates under Chain Labs.