India now ranks second, after the United States, in terms of all-time funding raised by women-led tech startups. The cumulative total stands at USD 26 billion. This milestone reflects the growing influence of women entrepreneurs in the Indian startup ecosystem.
Tracxn, a startup research firm, reports that India has over 7,000 active women-led startups. These account for 7.5 percent of all active startups in the country. Collectively, they have raised USD 26.4 billion in funding.
The year 2021 saw the highest funding at USD 6.3 billion. Bengaluru leads in both the number of women-led startups and total funding raised to date. Mumbai and Delhi-NCR follow closely behind.
In 2022, Indian startups contributed 15.18 percent of total funding raised by women-led startups worldwide.
India becomes second in startup funding
This amounted to USD 5 billion out of USD 32.8 billion globally.
The retail sector has secured the most investments by women-led startups, with USD 7.8 billion in all-time funding. Edtech and Enterprise Applications follow with USD 5.4 billion and USD 5 billion, respectively. B2C e-commerce, internet-first brands, and fashion tech are also witnessing significant activity.
However, acquisitions of women-led startups have been declining. The year 2021 recorded the highest number at 45 acquisitions. This fell by over 20 percent to 36 in 2022, and further decreased by 30.5 percent to 25 in 2023.
In 2024, acquisitions dropped to 16. The report stated, “These startups are not only securing massive funding but also redefining industries, generating employment, and setting new benchmarks for future entrepreneurs.” While there is still progress to be made in bridging the gender funding gap, these trailblazing women-led startups are proving instrumental in driving India’s growth story. The future looks promising for women entrepreneurs in India as they continue to attract significant investments and achieve remarkable milestones.
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