In 2023, India emerged as a significant player in the global Web3 development sphere, accounting for nearly 12% of all Web3 developers worldwide. This marks a substantial rise from just 3% in 2018, according to a recent analysis. The nation now boasts a vibrant ecosystem of over 1,000 Web3 startups, positioning it as one of the foremost hubs for Web3 innovation on the global stage.
What is web3
Web3, or Web 3.0, often referred to as the decentralized web or semantic web, represents the internet’s evolution, founded on blockchain technology and governed by its users. This next-generation internet is designed to offer enhanced security, privacy, accessibility, and resistance to censorship compared to its predecessor, Web 2.0. The goal of Web3 is to shift control away from large centralized online corporations to everyday internet users, empowering users with more autonomy over their personal data.
This comprehensive study was undertaken by Hashed Emergent, a venture capital (VC) firm based in South Korea, in partnership with KPMG in India, Devfolio, Coinswitch, and Kratos Gaming Network (KGen). One of the standout findings of the report is India’s leading role in on-chain adoption across the globe in 2023, outpacing more than 150 countries that were part of the survey. Indian cryptocurrency exchanges have seen substantial activity, with more than 35 million trading accounts. Additionally, India is recognized as a top-five country in terms of peer-to-peer (P2P) trading volumes.
This growth in the Web3 domain is particularly noteworthy considering the significant decrease in funding for the sector, which fell by 80% to $250 million in 2023 from around $1.4 billion the previous year. Despite this downturn in investment, the study observed that the number of transactions remained relatively stable, with 45 deals recorded last year compared to 62 in 2022.
Tak Lee, the CEO and managing partner of Hashed, spoke to Moneycontrol about the current state of the market, highlighting that there are already indications of a recovery phase as market conditions start to improve. Companies are gearing up to leverage the potential upcoming bull market, with many teams actively pursuing their next funding rounds. Lee also noted that entrepreneurs who secured funding during the market’s peak periods in 2021 and early 2022 have been using the recent economic slowdown as an opportunity to focus on product development and reduce costs, effectively extending their financial sustainability.
Hashed, which primarily invests in early-stage startups within the Web2 and Web3 sectors, operates globally with offices in South Korea, Dubai, Singapore, and India. In the Indian market, it has invested in several startups, including Crypso, Arda, Flint, and Liminal, among others.
It has been also reported that India is home to over 3,000 deep tech startups across various sectors, showcasing a promising and investment-worthy landscape.
