Indian Web3 Startups Raised $564M in Investments in 2024, Surpassing the U.S. in Developer Community Growth

Indian Web3 startups saw significant growth in investment activity in 2024, raising $564 million, a substantial increase from the previous year

Indian Web3 startups experienced a significant surge in investment activity in 2024, having raised $564 million, a substantial increase from the $270 million invested in the previous year.

According to the latest report by Hashed Emergent on India’s Web3 scene, despite the promising figures, the total funds raised by Web3 startups in 2024 are still less than the $1.4 billion peak reached in 2022.

The report, titled "State of Web3 in India 2024," further reveals that the year 2024 saw a 43% rise in the number of funding deals compared to the previous year, thanks in part to accelerators, Layer 1 and 2 ecosystems, and global Web3 funds.

Highlighting the more than 200% growth in the infrastructure sector, which primarily funded artificial intelligence (AI), middleware, and data tooling projects, the report notes:

“This sector saw Indian founders who have settled abroad raise funding for global category-defining companies such as EigenLayer, Sentient and Avail. Additionally, other emerging areas such as DePIN and BaaS also raised funding as investors increasingly view a decentralized future for several industries, particularly in the age of AI, where costs of coordination are likely to compress.”

Moreover, the finance sector of India’s Web3 industry also experienced a more than 50% surge in investment activity, reaching $86 million—the first increase since 2021. As capital allocated to the finance sector peaked at $640 million before declining, with only $55 million being raised in 2023, it seems that the industry is recovering with a push toward liquid restaking, real-world asset tokenization, and multi-chain financial tools.

In terms of developer activity, India had the fastest-growing developer community, with a 28% year-over-year increase in the number of open-source developers to 4.5 million—a figure greater than the next four top-ranked countries combined.

With this growth trajectory, India is set to overtake the United States and boast the largest developer community by 2028.