The Indian tech landscape is witnessing a revolutionary change. One of the key elements that fuels this shift is Bangalore, as it is fast becoming the country’s hub for Web3 startups. Dynamic Bangalore ecosystem has given Karnataka the lead in generating this phase of the internet, way ahead of other Indian states.
A recent report by the Bharat Web3 Association, titled India’s Web3 Revolution suggested this trend is highlighted by Bangalore’s central role in shaping India’s Web3 future as A Compendium of Web3 Firms Led by Indian Innovators.
Karnataka is home to 97 Web3 startups in the country, with a specialisation in blockchain, NFTs, the metaverse, gaming and decentralised finance (Decentralised Finance). According to the report, this is a 33 per cent share for Karnataka in the India Web3 companies stack which further illustrates the state’s leadership in emerging technologies. Second in line is Maharashtra – home to only 47 Web3 firms – the enormous void that has been created as the country’s technology capital is Bangalore.
India’s Tech capital has long been acknowledged to be the city. It is the first city in India with more than 96 Web3 firms headquartered in it, beating all other Indian cities. Mumbai lags far behind with 37 firms, but Bangalore remains well ahead with 187 firms in their Web3 ecosystem.
Bangalore isn’t a sudden rise to Web3 hub. Several factors, from favourable government policies to a good tech buildout, propel this transformation.
Supportive Policies and Ecosystem: The Karnataka government is taking active steps to promote emerging technologies. An environment conducive to innovation has been created by policies targeting the nurturing of startups and investments in technology parks. Similarly, Bangalore’s history as a centre for IT services has led to the adoption of Web3 technologies.
Talent Pool: There is a skilled workforce from around India and the world drawn to Bangalore’s reputation as a tech centre. The city is known for prestigious institutes such as the Indian Institute of Science (IISc), and several engineering colleges like WIES, so you have a stream of talent coming out of there, which is important for Web3 advancement, especially developers, designers and engineers. It is an exciting time to be based in Bangalore and the city is rapidly growing as a hub for Malta Blockchain, Artificial Intelligence (AI) and Cryptpotography professionals.
Funding and Investment: Web 3 startups have increasingly become the investment focus of investors as this technology has the potential to be transformative. Bangalore-based Web3 firms are attracting lots of interest from both domestic and international investors as well. With this volume of capital, startups were able to scale and innovate, stay on top of Web3 developments.
Web3, or the future of the internet, is a move away from more centralised methods and towards a more decentralised one where users can take full control. Unlike the static Web1 where users could only read info, Web2 which opened the door to interaction with each other, creating and sharing on centralized platforms, Web3 intends to create an open, democratic, and decentralized web. Users here have control over the data, assets, and digital identities they represent.
Decentralisation fits so well with India’s tech talent, especially that which is up and coming. According to the report, in the country where the 422 companies surveyed are headquartered almost 70% or about 290 companies springing that the country really loves Web3. This movement is led by Bangalore with a high concentration of these startups.
From all the sectors, Bangalore's Web3 ecosystem is very diverse. Key areas include:
Blockchain Development: Bangalore-based startups are using blockchain tech to bring more security, transparency and efficiency to businesses in the fields of finance, supply chain and healthcare. With blockchain being a foundational Web 3 technology, this puts it on the same page as Web3 for the city’s Web 3 firms.
Non-Fungible Tokens (NFTs): In Bangalore, the NFT market is now driven by digital ownership. NFTs have garnered huge interest from many startups that are trying to find innovative use cases for them across art, music and sports. Consequently, within this digital ownership trend, Bangalore-based NFT marketplaces and creators are trying to benefit from it, while further adding to the city’s Web3 space tag.
Decentralized Finance (DeFi): Existing financial services have been supplemented by DeFi offering decentralised transparent alternatives. DeFi startups in Bangalore are building lending, borrowing and trading platforms without intermediaries to help people access financial services.
Metaverse and Gaming: The metaverse is coming and Bangalore-based companies are building immersive, decentralized virtual environments and blockchain-based games. The attention as well as investments in startups in this space are attracting global attention and put Bangalore as a frontrunner in metaverse development.
It is on the global Web3 map because of the growth of Bangalore’s Web3. Cities like San Francisco and Berlin are leading the way when it comes to Web3 innovations across the globe, while Bangalore is of course faring very well for the ease of talent available, supportive government policies, and a skyrocketing startup ecosystem. In the context of Web3 innovation, the city's success is a result of India's ambition to be a leader globally and places it in contention as a contender in such a field.
Bangalore has a lot of potential, but there are challenges. Regulatory uncertainty over cryptocurrencies and blockchain technology has taken a negative toll on the India Web3 industry. The city needs to become a Web3 hub and that requires regulatory clarity. Moreover, while infrastructure for scale Web 3 apps is not yet available for SA to use, these gaps are already being addressed.
India’s tech sector has big news when it comes to the emergence of Bangalore as its Web3 capital. As a high concentration of Web3 (blockchain, NFTs, DeFi, metaverse) startups, the city has been pioneering India’s Web3 revolution. As Bangalore’s role becomes a critical part of the global Web3 stage, India is poised to dominate the next stage of the internet.