Defy Raises $5 Mn For Its Community Based Crypto Exchange

Social crypto exchange platform Defy has raised $5.5 Mn in a seed round from Y Combination, Goat VC, JAM Fund and Goodwater Capital. 

Founded by Bhagaban Behera, Sriharsha Setty and Nakul Kelkar, Defy is building a social and community-based crypto exchange. Available on the Google Play store as a mobile application, the platform allows users to create profiles and share their crypto trading portfolio and interact with friends and followers. 

Users can then interact with and follow experts for investment strategies while also keeping track of their friends’ portfolios. According to the startup, it also educates users with gamified content and social conversations.

Defy plans to use the freshly infused capital in expanding its team across engineering, product, growth and other verticals.

“Defy is a coming-of-age fintech startup that aims at disrupting the cryptocurrency space in India. Our platform puts the user’s needs at the heart of the conversation. It is an app for crypto enthusiasts in India that embraces a friendly user experience keeping the intimidating crypto lingo at bay,” said Bhagaban Behera, cofounder and CEO of Defy.

According to the 2021 Geography of Cryptocurrency Report by blockchain data firm Chainalysis, India ranks sixth globally in crypto adoption. “India has a much bigger share of activity taking place on DeFi platforms at 59%, versus 47% for Vietnam and 33% for Pakistan. All three regions grew substantially over the last year. Pakistan experienced the most growth at 711%, just ahead of India at 641%,” said the report, speaking about the Central and Southern Asia and Oceania (CSAO region).

“We want to make the process of investing in crypto much more seamless and enjoyable by making it community first,” said Nakul Kelkar, cofounder and COO of Defy.

In India, there is a trend of real estate investors moving to invest in crypto. While real estate prices have remained stagnant for a few years, the cryptocurrency market has been witnessing a continuous rise, keeping ahead of inflation. 

The creator economy is also adopting crypto very fast. Many freelance professionals who work for overseas employers conduct transactions in cryptocurrencies—both for convenience and interest in the asset class.