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The Growth of Web3 vs Web 2 Unicorns in India

The Growth of Web3 vs Web 2 Unicorns in India

Rohit Jain, MD, CoinDCX Ventures, discusses the emergence of Web3 unicorns in India with Aabha Bakaya

Rohit Jain, and Aabha Bakaya explore the emergence of Web3 unicorns in India, how to build the world for Web3, and the kind of opportunities and potential scale that can be tapped for more unicorns in the space.

In India, large companies are being built for Web3 because of a unique vantage point based on two primary reasons. First, India is the most extensive retail crypto base in the world. Second, India has the most number of Web3 developers, giving India a unique positioning.

Over time it has been noticed that the trend has changed dramatically in terms of quantity and quality of developers because the Web3 developer is different from the Web2 developer. When Web2 development started, India didn't have a thriving digital economy, and this is because the developers had a service mindset for building global companies. But in Web3, the developers have a builders mindset, and large companies are created out of India, thus the expected increase in the number of unicorns.

Understanding the difference between a Web3 unicorn and Web2 unicorn is important. In the Web3 space, there are two types of business models; first, the centralised business model and the other one, the decentralised business model. The centralised business model is similar to the Web2 unicorn. In contrast, the decentralised system is close to the Web3 business model, where the company's value is distributed among all the token holders, making it more significant for retail to participate. The other difference is the function of the Web3 market space, which is more global than the Web2 market space. Over the last few years, the market faced turmoil, yet development continues at a robust pace.

When exploring the new unicorns coming up in the Web3 space and the technology adoption for global peers one can consider DeFi, NFTs etc. The advent of mass adoption of CeFi within Web3 technology will also bring new unicorns to the market.

The Indian ecosystem stands out on a global level which will bring more Web3 developers and retail customers. Companies can build, trade and provide builders with an edge in the Web3 space. For example, EPNS and Spheron are creating the messages layer in the Web3 area. The layers of abstraction for distributing storage protocols are making it easier for developers to build in Web3 space.

CoinDCX Ventures is a prominent initiative in this space. In a nutshell, it is an early-stage investor with flexible mandates that support entrepreneurs to build the stage. It also focuses on building a portfolio with three dimensions. The first is VC funds, which add value to the portfolio companies by fundraising, being a strategic partner and helping in networking. Second is Crypto VCs, which allow the companies to build a portfolio through tokenomics and help build community. Finally, CoinDCX Ventures has been built on the experience of CoinDCX as the largest crypto exchange in India, thus lending tremendous experience and resources to all its portfolio companies.