Indian Web3 startups raised $564 million in 2024, up from $270 million in 2023, though still below the $1.4 billion peak in 2022. According to a new report by Hashed Emergent, the Indian Web3 ecosystem is showing strong signs of recovery in both investment activity and developer community growth.
Funding Recovers but Remains Below 2022 Peak
The report found that the number of funding deals in 2024 increased by 43% year-over-year, driven by accelerators, Layer 1 and Layer 2 ecosystems, and global Web3 funds. The infrastructure sector saw capital inflows surge more than 200%, primarily directed toward artificial intelligence, middleware, and data tooling projects. Indian founders based abroad raised significant capital for global category-defining companies such as EigenLayer, Sentient, and Avail. Emerging areas like DePIN (Decentralized Physical Infrastructure Networks) and BaaS (Blockchain-as-a-Service) also attracted investments as investors bet on a decentralized future.
The finance sector also staged a comeback, with investment reaching $86 million — a 50% increase from 2023 and the first rise since 2021. Capital allocated to finance had been declining from a high of $640 million in 2021 and bottomed at $55 million in 2023. The report attributes the recovery to liquid restaking, real-world asset tokenization, and multi-chain financial tools.
Developer Community Explodes
India's developer community posted the fastest growth globally, with the number of open-source developers increasing 28% year-over-year to 4.5 million. This figure dwarfs the combined total of developers in the next four highest-ranked countries. The report predicts that India will surpass the United States by 2028 to become the world's largest developer community. Hashed Emergent emphasized that India is rapidly becoming a core hub for Web3 innovation, with its deep and broad developer talent pool poised to fuel global blockchain projects.
While total funding has not yet returned to 2022 levels, the structural growth in infrastructure and finance, combined with the explosive developer growth, sets a strong foundation for India's Web3 ecosystem. The report concludes that as AI and blockchain converge and decentralized solutions gain traction across industries, India is well-positioned to lead the next wave of Web3 adoption.