Web3 ecosystem in India is growing fast and soon Indian Web3 Market to Reach US$1T
With over 320 million active users worldwide, the cryptocurrency surge globally has set the stage for accelerated Web3 adoption, says the latest report. Nasscom on Wednesday released a study with Hashed Emergent on India Web3 Start-up Landscape on the sidelines of the Nasscom Product Conclave held in Bengaluru. Web3 incorporates concepts such as metaverse, blockchains, and non-fungible tokens (NFTs). Web3 in India is being led by decentralized finance (DeFi) and NFTs. Cryptocurrency trading is a subset of blockchain-based solutions. Experts believe that the Indian Web3 Market will reach US$1T in near future but the government, on the other hand, might not comply.
The focus on Web3 in India grew rapidly in 2015-17 with the launch of Ethereum but grew phenomenally in 2020-21 after the national cryptocurrency ban was lifted. The report says the country’s Web3 start-ups have focused less on purely speculative cryptocurrency trading. Instead, they are focusing on building diverse Web3 solutions across all major application areas. At present, only 29% of current solutions include cryptocurrency token trading.
According to the report, Web3 start-ups in India have grown to over 450 in the last two years, and they have raised $1.3 billion in investments till Q12022, which is expected to cross $1 trillion in the next 10 years.
The Indian Web3 Market will reach US$1T as it has produced four unicorns so far and between 2021 and 2022 alone, the country registered over 170 new Web3 start-ups, with over 50% CAGR growth since 2015.
Globally, venture capital funding in the blockchain and cryptocurrency market in 2021 stood at $30.5 billion, and there have been 15x growth in VC funding for crypto and blockchain start-ups since 2015.
“Investments in Indian Web3 and Web 2.5 start-ups have also soared. The sector has witnessed robust funding across stages, and new age incubators have pooled in over $587 million funding, as of Q32021,” the report said.
According to reports, global investors have agreed to spend millions of investments on the Indian web3 ecosystem, citing India’s strong team of 4 million engineers, experienced tech operators, and strength in building web 3 communities. It is said that very shortly, Web3 will be a game-changer for India in terms of all its industries and innovative initiatives. “Web3 is a chance for India to build and dominate the world. The early years of the Internet were captured by the West and India could not capitalize. It became a services industry. The Web3 companies, today, are defining the space and setting a precedence for how the next set of Web3 companies will operate. We have the right talent and resources to build Web3 and the opportunity should not be lost,” said Ashish Singhal, co-founder, and CEO of CoinSwitch, while commenting on the future of Web3 within India’s technological ecosystem.
He spoke at the India Internet Day 2022 organized by TiE Delhi NCR. Web3.0 focused on decentralization, creating opportunities for websites to process information in a smart approach that eventually affects India’s work processes efficiently and effectively. Mentioning the core basics of India’s advanced technology ecosystem, Ankit Jindal, co-founder of Biconomy, said, “The core fundamentals of developers in India are phenomenal and they are very motivated.” India is known to have one of the largest and most innovative communities that encompass startups, innovators, and developers across the world, and also can make the country an inclusive digital society with its democratizing benefits of digital technologies.
India is said to be one of the fastest-growing Internet consumer markets in the world. “While we did not have a large consumer market till 5 to 6 years back, now things have changed. We are just 2 to 3 years away from seeing a lot of consumer-based apps coming up and the world is looking at India now. Some of the elements of Web3 were already there in gaming, it is just that we have realized it in the past 3 to 4 years. In expanding outside India, one must remember that the go-to-market strategy has to be very different as consumer preference differs. Founders should be patient and be ready to burn their fingers,” said Sai Srinivas Kiran G, co-founder of Mobile Premier League. Reports say that Web3 will help India contribute $1.1trillion to its GDP in the next 11 years.
