OCTOBER 20258iWHY NFT-DRIVEN STARTUPS ARE RESURRECTING GAMER FUNDINGBy M R Yuvatha, Senior Correspondent, Startupcity Columnn the shadowed outcome of the 2022 crypto crash, Indian gaming funding appeared to flatline, with venture capital inflows to web3 gaming plummeting 93 percent year-over-year by Q2 2025. Traditional models VC pitches, publisher deals left indie developers starved, echoing the bust of arcade eras past.Yet, as of now, a phoenix stirs in the subcontinent, Indian NFT-driven startups have funneled over $100 million into gaming ecosystems this year alone, resurrecting funding through tokenized ownership and community-led economies. This isn't mere speculation, it's a structural shift where gamers become stakeholders, NFTs serve as programmable assets, and play-to-own mechanics democratize capital.Drawing from blockchain's immutable ledger, these ventures bypass gatekeepers, channeling player investments directly into development.The result?A 25 percent uptick in daily active web3 gaming wallets in India despite market headwinds, signaling a renaissance where funding flows from pixels to prosperity.This resurgence hinges on NFTs' evolution beyond hype, they're now utility tokens for in-game assets, governance, and revenue shares. Indian startups leverage them to crowdfund via initial drops, sustain via royalties, and scale via interoperability. Unlike 2021's JPEG frenzies, 2025's models emphasize sustainable play loops, with 70 percent of funded projects integrating AI for dynamic economies.
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