In 2024, India secured the third position worldwide for funding raised by women-led startups, following the US and the UK, representing 3.96 percent of global funding for women-led startups.
According to a report released on Friday, the Indian tech startup ecosystem now holds the second spot, behind the US, for total funding raised by companies with women founders, amassing USD 26 billion to date.
India boasts over 7,000 active women-led startups, which make up 7.5 percent of all active startups in the nation. These startups have collectively garnered USD 26.4 billion in funding, with 2021 marking the peak year at USD 6.3 billion, as per data from Tracxn, a prominent startup research and analytics firm.
Bengaluru tops the list for both the number of women-led startups and total funding raised, followed by Mumbai and Delhi-NCR. On a global scale, Indian startups contributed the highest funding in 2022, accounting for 15.18 percent. That year, women-led startups in India raised USD 5 billion, compared to a global total of USD 32.8 billion.
The retail sector leads in investments raised by women-led startups, with an all-time funding total of USD 7.8 billion, followed by edtech at USD 5.4 billion and enterprise applications at USD 5 billion. The report highlights significant activity in sub-sectors like B2C e-commerce, internet-first brands, and fashion tech, with numerous startups co-led by women.
The highest number of acquisitions of women-led startups occurred in 2021, totaling 45. However, this figure dropped by 20 percent to 36 in 2022 and further declined by 30.5 percent to 25 in 2023. In 2024, acquisitions fell to 16.
“These startups are not only securing massive funding but also redefining industries, generating employment, and setting new benchmarks for future entrepreneurs,” said the report.
The startup ecosystem has significant progress to make in closing the gender funding gap, yet these pioneers are demonstrating that women-led startups are a key part of India’s growth narrative.
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