How are Indian startups benefiting from crypto?
At first sight, it may come as a surprise that Indian startups are actually benefiting from crypto. But walk into any startup hub in a city like Bengaluru, and you’ll notice a shift in conversations. Founders aren’t just discussing traditional venture capital rounds; they’re exploring token economies, decentralized applications and blockchain-powered services.
In other words, the days when users would flock to exchanges just to check ETH INR and other digital currency prices are slowly passing. Today, crypto is becoming something far more deeply integrated into how startups operate. Many of these businesses are now using it to support payments, unlock funding and even shape entirely new products from the ground up.
In fact, industry expert Krishna Tyagi, Head of Web 3 at KPMG in India, said, “The increasing adoption of web3 and blockchain across various sectors and industries is a big global opportunity for Indian tech talent and businesses. Blockchains have enabled various innovative use cases such as DeFi, Real World Assets tokenisation, 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.”
A ready-made audience that’s already engaged
One of the biggest advantages Indian startups have right now is access to a massive user base. According to Disruption Banking, about 119 million Indians own crypto, making this market the largest globally. And as you may know, launching a new product always feels easier when your audience already understands the basics of what you’re offering. In the same way, integrating crypto-based infrastructures means Indian startups already have more than 100 million potential customers to appeal to.
That’s why some of them are already experimenting with this technology. And those that have already integrated it are working hard to ensure that everything is user-friendly. You don’t want to hype users with a new technology but fail to deliver on the experience. That can frustrate potential customers and even discourage them from ever returning to your platform. Imagine the pain of losing about 1 in 3 shoppers, who, according to Site Qwality, often leave after just one bad experience.
Such losses can have far-reaching consequences, which explains why crypto innovations are becoming more user-friendly. But beyond that, incorporating digital currencies into your operations can make your brand feel customer-focused. Those young, tech-savvy Indians who are so into crypto begin to view you as innovative and globally aware, which in turn strengthens trust and improves long-term engagement. And once trust enters the equation, adoption becomes habit.
Catering to the need for security and speed
As you already know, cyberattacks are on the rise. And the more they increase, the more users become security-conscious, meaning you can’t ignore their safety if you want to appeal to them. But thankfully, crypto can help meet these users’ demands. Through decentralization, the technology provides a structure in which transactions are verified across distributed networks rather than relying on a single vulnerable point. As a result, startups handling payments or other digital assets can reduce certain risks associated with centralized systems.
On top of that, cryptocurrencies can help cater to the growing need for faster payments. Of course, no one wants their funds delayed today. It’s the reason the Unified Payments Interface (UPI) accounts for 85% of payment volumes in India, according to estimates by IBEF. And since crypto transactions can be settled within seconds due to the absence of intermediaries, businesses are now beginning to see them as a practical tool for improving operational efficiency.
Because of these advantages, it shouldn’t be a surprise that crypto-based payment infrastructures like Binance Pay are becoming so popular. In fact, according to recent Binance estimates, Binance Pay has processed over $280 billion since 2021, with India emerging as one of the markets helping drive that growth.
Increased funding and global investor interest
Traditionally, startups heavily relied on venture capital rounds led by domestic or US-based investors. The process was always tedious, as you had to pitch for months before securing meaningful capital. But thanks to crypto, funding can now tap into global pools of capital.
And this is already happening in India. Just last year (2025), the country’s startups raised $890 million. And mark you, this comes at a time when regulations are quite restrictive, requiring companies to pay a 30% tax on crypto gains and a 1% TDS on all transactions.
Now, if you’ve been in business for some time, you know this is not exactly a “friendly” environment for rapid capital expansion. High taxation usually slows down innovation, or at least, pushes it into more traditional lanes. But the opposite is happening in the Indian crypto-driven ecosystem. Instead of shrinking, the space is expanding.
In simple terms, crypto can actually be useful beyond just speculation. And in India, startups are using it to improve customer-centricity, which, in turn, leads to more competitiveness. When it comes to catering to needs like speed and safety, this technology is proving to be helpful, making it possible to complete transactions in a fast and secure manner. And that’s without forgetting how it has made it possible for these businesses to tap into a borderless investment ecosystem.
