India's Web3 adoption deepens with 1000 + Startups - Hashed Emergent Report

•  India has one of the largest web3 ecosystems in the world, boasting 1,000+ startups
• India’s share of the global pool of blockchain developers has increased from 3 per cent in 2018 to 12 per cent  in 2023, and has the highest share among the emerging markets
  
• India has claimed the top spot for on-chain adoption in 2023 among 150+ countries, with more than 35 million trading accounts on the top Indian exchanges.

India, 09 April 2024: Hashed Emergent, a web3 venture capital firm focused on India and emerging markets, has unveiled the second edition of its flagship report, ‘India’s Web3 Landscape 2023’. The report, which analyses and highlights India's remarkable emergence as a global leader in web3 adoption, has been developed by Hashed Emergent and its knowledge partners KPMG in India, Devfolio, Coinswitch, Kratos Gaming Network (KGen).

The web3 industry has been on a rise globally, and India has stood out as a beacon of growth for this transformative technology. The report delves into the trends and drivers that have propelled India to the forefront as the leading adopter of blockchain technology. It explores the dynamics behind India's rise in the web3 sector, showcasing its vibrant start-up ecosystem (with over 1,000 start-ups), with Bengaluru emerging as the hub for the sector.

Krishna Tyagi, Head of web3 at KPMG in India stated, “The increasing adoption of web3 and blockchain across various sectors and industry is a big global opportunity for Indian tech talent and businesses. Blockchains have enabled various innovative use cases such as DeFi, Real World Assets tokenisation, Self-Sovereign Identities, Track & Trace etc. which were not possible earlier. We are continuously innovating and participating to develop the ecosystem and help our clients leverage the power of blockchains”.

Tak Lee, CEO & Managing Partner of Hashed Emergent, stated, “The findings of our second edition flagship report underscore India’s remarkable ascent in web3 adoption and shows that it is on a trajectory to become the global leader. With a large economy, skilled tech talent pool, and favourable demographics, the right conditions exist for a thriving Indian web3 sector full of innovation and opportunity. We believe the regulatory environment is evolving slowly in the right direction, and further positive regulatory developments are required to fuel growth. India’s web3 sector is dynamic and vibrant. At Hashed Emergent, we are excited to witness and contribute to India’s journey towards becoming a powerhouse in the decentralised future.”

• Consumer Adoption: India has claimed the top spot for on-chain adoption in 2023 among 150+ countries, with more than 35 million trading accounts on the top Indian exchanges. India now ranks in the top 5 in peer-to-peer (P2P) trading volume. Notably, 75per cent of Indian centralised exchanges (CEX) users are under 35, with Bitcoin (BTC) and Ethereum (ETH) emerging as the most favoured assets among Indian traders
  
• Funding: India has one of the largest web3 ecosystems in the world, boasting 1,000+ startups. The sector received USD 250M of investment in 2023, which was a decline from the total funding in 2022, but the number of deals has stayed flat showing sustained interest in early-stage web3 start-up. There has been an increase in funding of start-ups in web3 subsectors of finance, entertainment, and infrastructure
  
• Developers: India’s share of the global pool of web3 developers has increased from 3 per cent in 2018 to 12 per cent in 2023, and India has the highest share of web3 developers among the emerging markets
  
• Web3 Gaming: 90 per cent of the surveyed web3 gamers stated that they played web3 games to earn NFTs and tokens, and 50 per cent of the gamers surveyed also expressed that they enjoyed playing web3 games. Additionally, gamers have a higher propensity to play for web3 games over web3 games. Over 29 per cent of respondents spend more than INR 1,000 in web3 games, compared to 10 per cent among Web2 games
  
• Institutional Adoption: Large companies today are participating in the web3 ecosystem. The Indian government and more than 50 per cent of State governments are planning or running initiatives that leverage blockchain.