Bengaluru and San Francisco-based crypto asset management platform Mudrex has raised $2.5 million in a seed round led by Nexus Venture Partners with participation from Village Global, Kunal Shah, Anand Chandrashekharan, and Anjali Bansal. The company had earlier raised $750,000 from Y Combinator, Better Capital, Woodstock Fund, and angels like Nitin Sharma and Anupam Mittal. Mudrex platform simplifies crypto investing by providing innovative investment products modeled along the lines of ‘Mutual Fund’ and ‘ETFs’ for long-term wealth creation. The funds raised will help Mudrex in scaling up the team and operations, acquiring global regulatory compliances, and creating innovative products.
Investing in crypto is broken. Most retail users end up purchasing random tokens hoping for 10x returns in five days with a very high chance of everything going to zero. This is not investing and might even be borderline gambling and is exactly what prevents the general retail audience from participating in this new emerging financial ecosystem.
The only way for long-term steady wealth creation is to invest in systematic investment products. In the equities world, creation of investment products like Mutual funds, ETFs, Index Funds, etc helped solve this exact problem. Mudrex is creating simple-to-invest products with a better risk/reward ratio that will help the next billion users join and participate in crypto.
Mudrex’s first product gives investors the ability to invest in algorithmic strategies created by professional traders. Mudrex curates these funds, assigns them a risk/reward score and offers them in a simple & easy to invest browse list for users to invest in. Effectively, Mudrex has today already built the ‘Mutual Fund’ investing layer for crypto.
Launched in 2018 by IIT Bombay Alumni, Edul Patel, Rohit Goyal, Alankar Saxena, and IIT Kanpur alumnus Prince Arora, Mudrex was built with the idea of revolutionizing retail participation in crypto. It helps people invest in cryptocurrencies in a hassle-free and safe environment, using top algorithms made by successful portfolio managers. Mudrex hosts over 25,000 active portfolio managers acquired both organically as well as through a referral system and has witnessed more than $1 Billion in trading on the platform. The company at present holds an AUM of $15 Million and counting.
Commenting on the fundraise, Edul Patel, CEO & Co-founder of Mudrex, said, “Mudrex is bringing wealth tech to crypto. We’ve been able to scale the business profitably with a growth rate of 30% m-o-m over the last 10 months. Today, Mudrex is a global platform with users from over 90 countries. Our vision is to become the leading crypto asset management platform that provides users state-of-the-art products and services to improve their trading decision making and hence returns on investment. We will achieve this through expanding our user community, providing superior tools to advanced portfolio managers, debunking myths about crypto trading as well as new product introductions like crypto indices, high yield crypto ‘savings account’, building out our mobile apps and more. ”
Pratik Poddar, Principal, Nexus Venture Partners, added, “The cryptocurrency ecosystem is at an inflection point. Mudrex team has shown incredible potential and growth in carving a niche for themselves in a product-first customer-centric manner. They are operating at the intersection of three growth trends – access to wealth management services for retail investors, social investing by a new upcoming class of retail investors who are more risk taking, and crypto trading. They are operating in a market that is on the cusp of breaking out, and we are proud to get a chance to work with the team.”
“Cryptocurrencies stand out as a new asset class with extraordinary returns over the past decade, but systematic investment products like mutual funds are lacking. Mudrex enables the crypto-equivalent of mutual funds, ETFs, and index funds by letting professional investors create algorithmic crypto trading strategies on the platform. Then, Mudrex makes those algorithms discoverable by other investors who can make informed choices to put money behind the strategies that match their risk/reward profile. It’s a new ecosystem of algorithm creators and those who back their strategies. ”, said Anne Dwane, Co-founder & Partner at Village Global.
“Our group at Incrypt has been fortunate to work closely with Mudrex since day one, and among all the teams in crypto that we have met since 2017, the Mudrex team has stood out for their customer-centricity, tenacity through various cycles, and superior capital efficiency. As crypto matures as an asset class, Mudrex has the opportunity to be the default asset management gateway for millions of new consumers”, added Nitin Sharma, a pre-seed investor.