India Secures Second Position Worldwide in Funding for Women-Led Tech Startups
New Delhi: A recent report indicates that tech startups in India led by women rank second globally in all-time funding, surpassed only by the United States. These ventures altogether have secured a substantial $26.4 billion in capital, according to the report by Tracxn, a startup research and analytics firm, as reported by PTI.
The year 2021 saw the highest funding, reaching $6.3 billion. Tracxn also noted that over 7,000 women-led startups constitute 7.5% of the active startups in the country.
The IT hub of Bengaluru takes the top spot.
Bengaluru, the IT hub of India, leads in both the number of women-led startups and the total funds raised. Mumbai and Delhi-NCR follow Bengaluru.
In recent years, women-led unicorns in India have experienced fluctuations. A significant surge occurred in 2021 with eight new unicorns, followed by five in 2022. The growth was steady in 2019 with three unicorns, increasing to four in 2020. However, there were no new unicorns in 2017, 2023, and 2024, indicating unstable momentum.
The sector needs strong financial backup, ecosystem support, and mentorship to foster consistent growth in women-led unicorns, the report stated.
The highest number of acquisitions by women-led startups took place in 2021, with 45 buyouts. This number decreased to 36 in 2022 and further to 25 in 2023. Last year, the figure was 16.
Additionally, five women-led startups went public in 2024, including MobiKwik, Tunwal, LawSikho, Usha Financial, and Interiors and More. There have been no IPOs so far this year.
Tracxn noted that, besides major funding, these startups “are redefining industries, generating employment, and setting new benchmarks for future entrepreneurs.”
Despite the existing funding gap, women-led startups are significantly contributing to India’s growth story.
India-based startups contributed the most to global funding in 2022 at 15.18%. During that year, women-led startups in India raised $5 billion, compared to $32.8 billion globally.
Last year, India ranked third in funding raised by startups co-led by women, accounting for 3.96% of the total funds raised by women-led startups worldwide. The US and UK led the list.
