India’s Web3 adoption deepens, with 1,000+ start-ups, and more than 35 million traders- 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.

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 tokenization, 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 favorable 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 decentralized future.”

Some key highlights from the report include:

• 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 centralized exchanges (CEX) users are under 35, with Bitcoin (BTC) and Ethereum (ETH) emerging as the most favored 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.

About Hashed Emergent:

Hashed Emergent is an early-stage venture capital fund focused on investing in companies at the intersection of Web2 and Web3 in emerging markets, particularly India. Based in Bangalore, Singapore and Dubai, Hashed Emergent’s team of diverse professionals is dedicated to empowering builders who are enabling the mass adoption of blockchain and accelerating the decentralized future. Hashed Emergent also hosts India Blockchain Week Conference, the leading web3 conference in India. As a part of Hashed, which is one of the most active blockchain-focused investment firms in the world, Hashed Emergent leverages a broad breadth of experience and a large professional network to offer the best support to its portfolio companies.

About KPMG in India

KPMG entities in India are professional services firm(s). These Indian member firms are affiliated with KPMG International Limited. KPMG was established in India in August 1993. Our professionals leverage the global network of firms, and are conversant with local laws, regulations, markets and competition. KPMG has offices across India in Ahmedabad, Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Jaipur, Kochi, Kolkata, Mumbai, Noida, Pune, Vadodara and Vijayawada.

KPMG entities in India offer services to national and international clients in India across sectors. We strive to provide rapid, performance-based, industry-focused and technology-enabled services, which reflect a shared knowledge of global and local industries and our experience of the Indian business environment.