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The India Web3 Startup Landscape: An Emerging Technology Leadership Frontier

October 19, 2022 33191 4 Product/Startups

The India Web3 Startup Landscape: An Emerging Technology Leadership Frontier

Web3 is the next evolution of the World Wide Web based on the idea of ownership and empowering the users with more data control. “The India Web3 Startup Landscape: An Emerging Technology Leadership Frontier,” is a first-of-its-kind study aimed at promoting a broader understanding of the diverse possibilities with Web3 and the landscape of Web3 startups in India. The report analyses the Indian Web3 startup landscape and highlights the stakeholder priorities including investment and talent front for strengthening the ecosystem further.

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Key Highlights

Web3: A growing global phenomenon

  • Blockchain & cryptocurrency market recorded venture capital (VC) funding of $30.5 billion in 2021
  • 15X growth in Web3 VC funding between 2015-21 with 5X growth in share of total VC funds
  • Multiple countries establishing policy frameworks on virtual digital assets (VDAs)

India’s Web3 Potential

  • Demographic and Economic Factors
    • India is expected to be one of the fastest growing economies, at an average 7% during 2022-26
  • Investment Potential
    • As of today, India is home to over 450+ Web3 startups with $1.3 billion of total investments in the last two years (until April 2022)
  • Talent Pool
    • 11% of global Web3 talent is in India, making India the 3rd biggest talent pool in this area

Challenges

  • Lack of policy clarity around VDAs leading to lack of confidence in founders and innovators, and exodus of talent and funding, can hurt India’s Web3 potential in the long run

Recommendations

  • Regulate usage and conduct, NOT technology, to unravel the diversity of use cases in blockchain
  • Embrace risk-based regulatory approach
  • Bring diverse ecosystem players together – Web3 startups, policy experts, investors, large companies, and government entities in constructive discussions to further grow India’s Web3 potential

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