India’s startup ecosystem has witnessed a remarkable rise in women-led businesses, with over 7,000 active startups, making up 7.5 % of all startups in the country. According to a recent report by business intelligence platform Tracxn, these ventures have collectively secured US$ 26.4 billion in funding, with 2021 emerging as the highest-funded year at US$ 6.3 billion. Notably, India ranks second globally, after the United States, in terms of total funding raised by startups with women founders, highlighting the growing influence of women entrepreneurs in the tech industry.
Image Credit: Shutterstock
The Indian startup ecosystem has witnessed a significant rise in women-led businesses, with over 7,000 active startups led by women, accounting for 7.5% of all active startups in the country. According to a recent report by business intelligence platform Tracxn, these ventures have collectively raised US$ 26.4 billion in funding to date, underscoring the increasing role of women entrepreneurs in the country’s economic landscape.
India’s women-led startups have established a strong global presence, ranking second only to the United States in terms of all-time funding raised. In 2024, India ranked third globally in terms of funding raised by startups co-led by women, following the US and the UK, and accounted for 3.96% of the total funding raised by women-led startups worldwide. The highest-funded year so far has been 2021, which saw investments of US$ 6.3 billion.
Among various sectors, retail has emerged as the frontrunner in attracting funding for women-led startups, securing a total of US $7.8 billion in all-time funding. The edtech sector follows with US$ 5.4 billion, while enterprise applications have received US$ 5 billion in funding. These figures highlight the diverse contributions of women entrepreneurs across industries, showcasing their ability to drive innovation and growth in key economic segments.
The journey of women-led unicorns in India has seen both progress and volatility. In 2019, there were only three unicorns led by women, which increased to four in 2020 and peaked at eight in 2021. However, the numbers have fluctuated since then, with five unicorns in 2022 and no new unicorns emerging in 2017, 2023, and 2024. This trend suggests a need for sustained investment and support to maintain consistent growth.
Acquisition trends also indicate a shifting landscape for women-led startups. While 2021 saw 45 acquisitions of women-led ventures, the numbers declined to 36 in 2022, 25 in 2023, and further to 16 in 2024. These numbers highlight the need for strategic interventions to bolster funding opportunities and market expansion for women entrepreneurs.
Despite challenges, women entrepreneurs have made significant strides in taking their companies public. In 2024, five women-led startups successfully went public, namely MobiKwik, Usha Financial, Tunwal, Interiors & More, and LawSikho. These IPOs mark a significant milestone, indicating that women-led businesses are increasingly gaining investor confidence and achieving financial sustainability.
While the Indian startup ecosystem has made significant progress in fostering women-led businesses, there remains considerable room for growth and support. Encouraging policies, increased access to funding, mentorship programs, and a strong network for women entrepreneurs can further accelerate the rise of women-led startups. As India continues to climb the global rankings in women-led startup funding, sustained efforts in creating a more inclusive and diverse entrepreneurial landscape will be essential to drive long-term success.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.