Despite facing numerous challenges, India’s female entrepreneurs are making significant strides in the tech startup ecosystem. A recent report shows that India now ranks second, after the US, in terms of all-time funding raised by companies with women founders, securing a total of $26 billion to date. India is home to over 7,000 active women-led startups, accounting for 7.5% of all active startups in the country.
These startups have collectively raised $26.4 billion in funding, with 2021 being the highest-funded year at $6.3 billion. Bengaluru leads in both the number of women-led startups and total funding raised, followed by Mumbai and Delhi-NCR. On a global scale, 2022 saw the highest funding contribution from Indian startups at 15.18%.
That year, women-led startups in India raised $5 billion, compared to $32.8 billion globally. In 2024, India ranked third globally in terms of funding raised by startups co-led by women, after the US and the UK, accounting for 3.96% of funding raised by women-led startups across the globe.
Women leading India’s startup growth
The retail sector takes a strong lead based on investments raised by women-led startups, securing $7.8 billion in all-time funding. Edtech ($5.4 billion) and Enterprise Applications ($5 billion) follow closely. Sub-sectors such as B2C e-commerce, internet-first brands, and fashion tech are seeing significant activity, with several startups co-led by women.
The highest number of acquisitions of women-led startups was recorded in 2021, with 45. However, this number declined by 20% to 36 in 2022 and further decreased by 30.5% to 25 in 2023. In 2024, the number of acquisitions fell to 16.
While the startup ecosystem still has a long way to go in bridging the gender funding gap, these trailblazers prove that women-led startups drive India’s growth story. They are securing massive funding, redefining industries, generating employment, and setting new benchmarks for future entrepreneurs.
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