India Ranks Second Globally in Funding for Women-Led Tech Startups, Report Shows
New Delhi: According to a new report, women-led tech startups in India have secured the second-highest amount of funding globally, surpassed only by the United States. These ventures have collectively raised a substantial $26 billion in capital, as reported by the Press Trust of India (PTI).
The year 2021 saw the highest funding influx, reaching $6.3 billion. Tracxn, a startup research and analytics firm, indicates that over 7,000 women-led startups constitute 7.5% of the total active startups in the country.
Bengaluru, India’s IT hub, leads in both the number of women-led startups and the total funds raised. Mumbai and the Delhi-NCR region follow Bengaluru.
In recent years, women-led unicorns in India have experienced fluctuations. The year 2021 saw a surge with eight new unicorns, followed by five in 2022. Preceding this, there was steady growth with three unicorns in 2019 and four in 2020. The report noted that 2017, 2023, and 2024 did not see any new unicorns, indicating an unsteady momentum. The report highlighted that “despite these setbacks, women entrepreneurs continue to drive innovation.”
The report emphasized that strong financial backing, ecosystem support, and mentorship are vital to foster a more consistent increase in women-led unicorns across the country.
In 2021, women-led startups marked the highest number of acquisitions, with 45 buyouts. However, this number decreased to 36 in 2022 and 25 in 2023. Last year, the number of acquisitions of women-led startups stood at 16.
A total of five startups led by women went public in 2024, including MobiKwik, Tunwal, LawSikho, Usha Financial, and Interiors and More. So far, this year has not seen any IPOs.
Tracxn adds that, besides securing massive funding, these startups are “redefining industries, generating employment, and setting new benchmarks for future entrepreneurs.”
While the startup ecosystem still has room to bridge the gender funding gap, these trailblazers have shown that women-led startups are driving India’s growth story, the report concluded.
In 2022, India-based startups contributed the most funding globally, at 15.18%. During that year, women-led startups in India raised $5 billion, compared to $32.8 billion worldwide. Last year, India ranked third regarding 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 the UK led the list.
