Indian Web3 Startups Raise $564M, 109% Increase in 2024
1min read Indian Web3 startups have experienced a significant surge in investment activity in 2024, raising a total of $564 million. This figure represents a substantial 109% increase from the previous year, bringing the cumulative funding in the sector to over $3 billion. The growth in investment is indicative of the burgeoning interest and confidence in the Web3 ecosystem, which is built on decentralized internet concepts and blockchain technology.
The developer community in India has also seen significant expansion, with the country adding over 4.5 million developers to GitHub in 2024. This growth rate of 28% year-over-year positions India as the fastest-growing developer community globally. Nearly 17% of new developers entering the Web3 space in 2024 were from India, and the region is projected to surpass the United States to become the world's largest developer community by 2028. Despite the government's cautious approach towards the sector, India now boasts the world’s second-largest crypto developer base, with 11.8% of developers based in the country.
A report by Web3 VC firm Hashed emergent highlights that 45.3% of Indian Web3 developers contribute code, 29.7% address bug fixes, and 22.4% focus on documentation. Gaming and NFTs account for 30% of developer engagement, while DeFi and Real World Assets (RWAs) contribute 26%. Most Indian developers are new to the Web3 space, with more than 50% joining in the past two years and 85% aged under 27. This youthful and dynamic developer base is a key driver of innovation in the sector.
The funding trends in 2024 reflect a strong focus on building new decentralized finance (DeFi) applications, including staking, liquid staking, and re-staking products across various ecosystems. Additionally, perpetual DEXs, Real World Assets (RWAs), and tokenization platforms have attracted significant investments. Key subsectors that drew substantial investments include AI, rwas, and staking solutions, driven by increased infrastructure spending around centralized AI by major tech companies.
Several prominent venture capital firms, including coinbase Ventures, Y Combinator, Animoca Brands, IOSG, and LD Capital, as well as homegrown firms such as Hashed Emergent, CoinDCX, PeakXV, Borderless, and Alpha Wave, have shown aggressive interest in investing in Indian Web3 projects. This influx of capital and expertise is expected to further fuel the growth of the Web3 ecosystem in India.
The growth of India's Web3 ecosystem is not only driven by technological advancements but also by the country's unique blend of entrepreneurial spirit and digital adoption. The renewed retail participation, shifting investor trends, and deeper integration of Web3 solutions by enterprises and the government are all contributing to the sector's progress. Despite global challenges, India's Web3 ecosystem has shown resilience and continues to attract significant investment and talent.
