Despite facing numerous challenges, India’s female entrepreneurs are making remarkable strides in the tech startup ecosystem. A recent report by Tracxn reveals that Indian women-led tech startups have collectively raised USD 26.4 billion in funding, placing India second globally after the United States. The country has over 7,000 active women-led startups, accounting for 7.5 percent of all active startups.
2021 stands out as the highest-funded year, with these startups raising USD 6.3 billion. Bengaluru leads in the number of women-led startups and total funding raised, followed by Mumbai and Delhi-NCR. In 2022, Indian startups made up 15.18 percent of the total funding for women-led startups worldwide, amassing USD 5 billion out of the global USD 32.8 billion.
Retail has secured the most investments in women-led startups, with USD 7.8 billion in all-time funding. EdTech follows with USD 5.4 billion, and Enterprise Applications with USD 5 billion.
India’s booming women-led startups
Sub-sectors such as B2C e-commerce, internet-first brands, and fashion tech are also experiencing significant activity. The highest number of acquisitions of women-led startups was recorded in 2021, with 45 acquisitions. This number declined to 36 in 2022 and dropped to 25 in 2023.
There were 16 acquisitions in 2024. The report states that these startups are securing massive funding, redefining industries, generating employment, and setting new benchmarks for future entrepreneurs. However, the startup ecosystem must still work to bridge the gender funding gap.
Despite the challenges, India’s women entrepreneurs are proving that they are driving the country’s growth story. With continued support and efforts to address the gender funding gap, the future looks promising for women-led startups in India.
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