A deep-tech start-up born in the city is working on a novel solution that could allow enthusiasts to trace the journey of cryptocurrencies like Bitcoins and help avoid investing in coins that were acquired through proceeds of crime, particularly in instances of purchase through peer-to-peer transactions.

Peer-to-peer trading refers to the direct exchange of cryptocurrencies between users without the involvement of centralised intermediaries such as brokers or exchanges.

Hornet Decentratech Pvt. Ltd was incubated at Webel-BCC&I Tech Incubation Centre and has bagged an investment of ₹4 crore from Mumbai-based Venture Capital Fund Artha VC and Calcutta-based angel investor Deepak Daftari.

The start-up is working on developing a solution for the investors that could prove useful at a time when trade and compliance in virtual digital assets, including cryptocurrency, are increasingly coming under the scanner.

“Our go-to-market strategy was establishing a presence in the B2G (business to government) segment providing solutions for law enforcement agencies. Our product is currently being used by several agencies (including Police in Telangana and Bengal) to solve investment scams and fraud of different sorts in cryptocurrency,” said Souvik Haldar, founder and CEO, Hornet Decentratech.

“With a presence in B2G, we are also looking to expand in B2B (business to business) and are in discussions with crypto exchanges. We will also be expanding in the B2C (business to consumer) segment and are in the process of developing our mobile application so that people can see whether the P2P transactions they are doing are safe. We are looking to launch this solution towards the end of April,” Haldar said.

Subhrojyoti Mondal, COO, Hornet Decentratech, said the application will provide a detailed risk analysis of the coin for the benefit of the investors.

Webel BCC&I Tech Incubation Centre, supported by Bandhan Konnagar, has incubated over 80 start-ups since its inception in 2019 after the launch at the opening of Bengal Silicon Valley by signing a memorandum of understanding in the presence of the Bengal chief minister in 2018.

Hornet was identified by Artha VC fund during the second edition of BCC&I Tech E Summit in Bengaluru in August 2024 following which negotiations started. Nine investors had joined the programme from Mumbai, Delhi NCR, Bengaluru and Calcutta. Hornet was also selected by STPI for a sponsored visit to TiEcon in San Francisco, USA, as part of its ‘Leap Ahead’ initiative. The Bengal Chamber on Wednesday said it was instrumental in connecting Hornet to STPI as well.

“Bengal Chamber has been anchoring the Webel-BCC&I Tech Incubation Centre, identifying promising start-ups, mentoring them and connecting the high potential ones with VCs and broader market for growth. Start-ups like Hornet have the potential to accelerate the start-up movement in Bengal around areas like cyber and the dark web,” said Arnab Basu, president, BCC&I and advisory leader, PwC India.

“As part of the Webel BCC&I Tech Incubation Centre, it has been my core objective to set up start-ups and guide and handhold them. With Hornet, I see the potential for them to grow immensely and hence decided to invest along with Artha VC,” said Deepak Daftari, mentor, Webel-BCC&I Tech Incubation Center and chairperson, IT Entrepreneurs and Tech Startup National Committee of BCC&I.

“The objective of the Webel-BCC&I Tech Incubation Centre is to support a thriving start-up eco-system in the state with the help of BCC&I, we are sure this incubation centre will have many more such success stories in the coming days,” said Kausik Halder, manager of Webel.