Coinbase (NASDAQ:COIN), a leading cryptocurrency exchange, is actively expanding its workforce in India, recruiting for technology roles in Bengaluru and Hyderabad despite facing regulatory challenges and having previously halted local services. The company's hiring push comes after a series of layoffs earlier in the year, with around 950 global employees let go in January 2023.
The renewed focus on India reflects a broader industry trend of investing in the country's technology sector. Notably, Gemini, another cryptocurrency exchange co-founded by the Winklevoss brothers, is also establishing a significant tech presence with a $24 million investment plan for a tech hub in Gurugram.
Coinbase's interest in India began in April 2022 when it initiated services there. However, the company faced setbacks from regulatory bodies like the Reserve Bank of India, which led to the removal of their UPI-based payments feature shortly after launch. By September 2023, the exchange advised Indian customers to withdraw funds by the end of October due to service termination. Brian Armstrong, Coinbase CEO, cited "soft pressure" from regulators as a contributing factor to their decision.
Despite these obstacles, Coinbase and Gemini's expansion efforts indicate confidence in India's tech talent pool. This sentiment is supported by findings from Nasscom and projections from EY's Vision 2030 report, which suggest multinational corporations see value in setting up Global Capability Centers (GCCs) in India to leverage cost-effective skilled labor.
As part of this strategic shift, Coinbase has listed openings for software engineers and other tech roles on LinkedIn for remote work or at their Bengaluru and Hyderabad offices. This move demonstrates the company's commitment to tapping into India's rich vein of technical expertise while navigating the complexities of an evolving regulatory landscape.
InvestingPro Insights
Coinbase's strategic expansion into India's burgeoning technology sector aligns with the latest data and insights from InvestingPro. With three analysts revising their earnings upwards for the upcoming period, there is an optimistic outlook on the company's growth potential. Additionally, the stock's significant return over the last week and its strong performance over the last month and three months highlight investor confidence, despite the company not being profitable over the last twelve months.
InvestingPro Data further reveals a market capitalization of $27.64 billion and a high Price / Book multiple of 4.67 as of Q3 2023. While revenue has seen a decline of 47.88% over the same period, the company's gross profit margin remains high at 85.61%. These figures underscore Coinbase's financial health and the market's valuation of its assets relative to its book value.
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