The Tracxn report reveals that India ranks second globally for funding women-led tech startups. In 2022, these startups raised $5 billion, while by 2024, India ranked third globally in funding contribution. The retail sector led with $7.8 billion in funding. Bengaluru is the frontrunner, and despite fluctuations in unicorn emergence, women’s innovations significantly impact the economy.
In an enlightening report by Tracxn, India has solidified its position as a powerhouse for women-led tech startups, ranking second globally in all-time funding after the US. In 2022, Indian women-led startups impressively raised $5 billion, marking a significant slice of the global $32.8 billion funding pie, as Indian startups contributed 15.18% to global funding that year.
By 2024, India secured the third position worldwide for funding generated by startups co-led by women, trailing only behind the US and the UK. Notably, women-led ventures in India represented 3.96% of the worldwide funding sector, illustrating their burgeoning impact.
The retail sector emerged as the frontrunner, with women-led startups raking in an impressive $7.8 billion in all-time funding. Following closely were the edtech and enterprise applications sectors, attracting $5.4 billion and $5 billion in funding, respectively. Various sub-sectors, including business-to-consumer e-commerce and fashion tech, have witnessed notable activity from women-led startups, according to the report.
Bengaluru stands tall as the leader in both the number of women-led startups and total funding raised, closely followed by Mumbai and Delhi NCR. The unicorn journey for these startups has been a rollercoaster, marked by peaks in 2021 that saw the emergence of eight new unicorns, while 2017, 2023, and 2024 were quieter years without new unicorns.
Despite ups and downs, the report highlights the unwavering drive of women entrepreneurs towards innovation. Essential support frameworks like financial backing and mentorship are emphasized as vital for nurturing a more consistent rise in women-led unicorns.
Significantly, 2021 recorded the highest acquisitions of women-led startups at 45, but numbers have since tapered, with only 36 acquisitions in 2022, 25 in 2023, and a mere 16 in 2024. The year also saw five women-led startups go public, including MobiKwik and LawSikho, although 2025 has yet to witness any IPOs.
The report underscores that these startups are not just focused on securing massive funding; they are also reshaping industries, creating jobs, and setting new standards for future entrepreneurs. While the journey to narrowing the gender funding gap continues, these pioneering women-led startups are undeniably a significant facet of India’s growth narrative.
India’s women-led tech startups are on a remarkable rise, securing substantial funding and redefining industries despite challenges. With strong representation in the retail sector and a notable presence in metropolitan hubs like Bengaluru, the potential for growth remains vibrant. Continued support and mentorship will be key to bridging the gender funding gap and fostering innovation. The journey of these startups continues to weave an inspiring story in India’s economic tapestry.
Original Source: m.economictimes.com
