India’s Web3 Startup Tally Tops 1,000 as Investor Appetite Soars
India now has a thriving Web3 ecosystem with over 1,000 startups in the space, a report published by Hashed Emergent on Tuesday showed. Bengaluru, renowned as the technology capital, has positioned itself as the central industrial hub in the country.
These Web3 startups have collectively secured funding over $2.5b, reflecting their burgeoning growth and attractive investment potential.
In 2023, Indian Web3 startups secured about $270m in funding, reflecting an 81% decrease compared to 2022 figures. However, the number of funding rounds have remained consistent over the past two years. This trend suggests a continued focus on early-stage innovation within the Web3 space.
Additionally, it signifies increased involvement from early-stage investors, such as corporate venture capitalists (CVCs) and ecosystem-specific funds.
In light of a challenging funding environment, founders who secured initial capital prioritized cost-reduction strategies. This shift in focus resulted in a decrease in the number of Series A and subsequent funding rounds for Web3 startups.
The report further found that the Indian Web3 landscape is witnessing the emergence of several key trends. These include the rise of perpetual decentralized exchanges, platforms facilitating on-demand digital asset retrieval, middleware infrastructure projects, and scaling solutions that adhere to a modular approach.
Funding for the Indian Web3 ecosystem has benefited from contributions from both domestic and international venture capital firms. Notably, active investors hail from regions such as the US, UAE, and Southeast Asia. These include names like Alpha Wave, Hashed Emergent, Coinswitch Ventures, and Coinbase Ventures.
Additionally, India has demonstrably solidified
