BENGALURU: Karnataka has emerged as a hub for Web3 technology in India, with 97 Web3 startups based in the state, according to the Bharat Web3 Association’s recent report, India’s Web3 Revolution: A Compendium of Web3 Firms Led by Indian Innovators.
This gives Karnataka a 33% share in the country’s Web3 ecosystem, placing it ahead of Maharashtra, which has 47 Web3 companies headquartered in the state.
The report highlights how Web3 has transformed users’ interactions with the internet, marking a shift from the earlier eras of Web1 and Web2. Unlike Web1, where users could only read content, or Web2, which allowed content creation but primarily on platforms owned by large centralised entities, Web3 aims to decentralise control, enabling individuals to own and manage their data and assets.
"From decentralised finance (DeFi) to Blockchain infrastructure and services, and tokens, including non-fungible tokens (NFTs), Metaverse to decentralised autonomous organisations (DAOs) and Custody Wallets, Indian firms are at the forefront of pioneering applications and services leveraging Web3 technologies," said Dilip Chenoy, Chairperson of the Bharat Web3 Association.
Out of the 422 companies analysed in the report, nearly 70%—approximately 290—are headquartered in India. Bengaluru, recognised as the Tech Capital of India, hosts 96 of these companies, while Mumbai stands as the second preferred city with 37 Web3 startups.
The report also notes that more than 400 companies in India are developing expertise in Web3 verticals such as blockchain development, non-fungible tokens (NFTs), the metaverse, gaming, and decentralised finance (DeFi).
Blockchain services form the largest Web3 category in India, with 79 companies working on blockchain solutions across industries. This is followed by VDA (virtual digital assets) exchanges and trading platforms, which account for 42 companies, and blockchain infrastructure firms, which number 36.
Decentralised finance and gaming and entertainment round out the top five Web3 verticals, with 28 and 25 companies, respectively.
The report further underscores India’s global position in Web3, noting that Indian developers make up 12% of the world’s Web3 talent, solidifying the country’s role in this emerging landscape.