Indian Women Entrepreneurs Stand 2nd In Global Startup Funding

The Indian startup ecosystem is abuzz with activity, and women entrepreneurs are the driving force behind the change. The Indian women entrepreneurs global funding ranking places India at number two globally, after the United States, in startup funding received by women-led startups, with an awe-inspiring $26.4 billion accumulated by these startups. This success is a result of the determination, foresight, and genius of Indian women who are breaking stereotypes and transforming industries. Let us look at the facts of this milestone, challenges for women-led startups in India, Startup India women entrepreneurship initiatives helping them, and what the future looks like.

The Rise of Women-Led Startups in India

India has more than 7,000 active women-founded startups, and they comprise roughly 7.5% of all active startups in the nation. The startups have cumulatively garnered $26.4 billion in startup funding, with the biggest year being 2021, which saw $6.3 billion in startup funding flow in. This colossal influx of capital reflects the increasing confidence that investors have in women-founded startups. These startups are not merely profit-making ventures; they’re employing people, fostering innovation, and redefining entrepreneurship in India.

Key Hubs and Sectors

The cities driving this trend are Bengaluru, Mumbai, and Delhi-NCR, which are hotspots for entrepreneurship and innovation. Bengaluru is the leading hub, both in terms of the number of women-led startups and overall startup funding raised. The most startup funding has been attracted by the retail industry ($7.8 billion), followed by edtech ($5.4 billion) and enterprise applications ($5 billion). New sectors such as business-to-consumer (B2C) e-commerce, internet-first businesses, and fashion technology are also catching on with women entrepreneurs.

Global Trends and Position of Indian Women-Led Startups

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Contribution to Global Startup Funding

Globally, Indian women-led startups have caused a big splash, contributing to the global ranking of women-led startup investments. In 2022, they contributed 15.18% to overall startup funding for women-led startups globally, raising $5 billion out of a global pool of $32.8 billion. But in 2024, the Indian women entrepreneurs global funding ranking fell to number three, after the US and the UK, representing 3.96% of global funding in women co-led startups. This movement indicates that while India is still a giant in the global ranking of women-led startup investments, competition is increasing at the global level.

Unicorn and Acquisition Trends

The trajectory for women-led unicorns—startups worth more than $1 billion—has been mixed. In 2021, India saw a surge with 8 new women-led unicorns, the highest ever. This was preceded by 3 in 2019, 4 in 2020, and 5 in 2022. Sadly, there were no new unicorns in 2023 or 2024. On the acquisition front, 2021 was a peak year with 45 deals, but this fell to 36 in 2022, 25 in 2023, and only 16 in 2024. In 2024, five women-founded startups became publicly traded companies through initial public offerings (IPOs): MobiKwik, Usha Financial, Tunwal, Interiors & More, and LawSikho. As of August 2025, there are no new IPOs reported.

Challenges Confronting Women Entrepreneurs

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Key Barriers for Women-Led Startups

Even with their impressive performance, the challenges for women-led startups in India are tremendous:

• Access to Finance: Just 10% of women entrepreneurs access formal finance because they lack collateral and face discriminatory lending, which affects the availability of startup funding. Most resort to informal financing, which caps their growth prospects.
• Social Norms and Stereotypes: Women are generally restricted by societal expectations to domestic work, and it becomes hard for them to spend time and energy on their ventures, contributing to the challenges for women-led startups in India.
• Shortage of Supportive Ecosystems: There’s a lack of mentorship, training, and networking services designed specifically for women entrepreneurs, which is one of the biggest challenges for women-led startups in India.
• Gender Bias and Discrimination: Women tend to be questioned regarding their capabilities, with investors doubting their dedication as a result of family obligations, discouraging startup funding.
• Work-Life Balance: Maintaining business needs alongside family responsibilities presents a major challenge for most women entrepreneurs.
• Limited Access to Networks: Professional networks, which tend to be male-majority groups, prove difficult for women to infiltrate, making it even more challenging for women-led startups in India.
• Marketing and Competition: With limited resources, women-led startups struggle to compete with established businesses in marketing and visibility, impacting their ability to secure startup funding.

These challenges for women-led startups in India highlight the resilience of women entrepreneurs who continue to thrive despite systemic barriers.

Government Initiatives and Support for Women Entrepreneurs

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Key Startup India Women Entrepreneurship Initiatives

The government of India has identified the potential of women entrepreneurs and launched a number of Startup India women entrepreneurship initiatives to empower them. These programs intend to offer financial support, mentorship, and an enabling environment:

Additional Support Programs

Besides, Startup India women entrepreneurship initiatives such as the Women Entrepreneurship Platform (WEP) by NITI Aayog, the Atal Innovation Mission (AIM), and the National Initiative for Developing and Harnessing Innovations (NIDHI) give infrastructure, financial assistance, and mentorship to support women in scaling their businesses.

Encouraging Success Stories of Women Entrepreneurs

A few women entrepreneurs have emerged as role models and have shown that perseverance and innovation can overcome the challenges for women-led startups in India:

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Falguni Nayar

Started Nykaa, a top beauty and fashion e-commerce platform, that has become a unicorn with more than 850 brands and 35 stores. Nykaa disrupted the Indian beauty market by introducing international luxury brands to consumers, raising substantial startup funding.

Kiran Mazumdar-Shaw

Founded Biocon in 1978 with only ₹10,000 in a garage. Overcoming gender bias and challenges for women-led startups in India, she established a global biopharmaceutical firm, revolutionizing the biotech sector with strong startup funding.

Also Read: How Women Get Ahead in Male-Dominated Tech Fields

Ghazal Alagh

Co-founded Mamaearth in 2016, with a mission to produce natural, toxin-free personal care products. Mamaearth is now a unicorn worth over $1 billion, promoting eco-friendly consumerism with significant startup funding.

Upasana Taku

Founded MobiKwik in 2009, a fintech leader that has enabled India to head towards a cashless society. Her achievements have empowered women in the otherwise male-dominated fintech industry, boosted by serious startup funding.

Impact on Future Entrepreneurs

Such women, along with other entrepreneurs, have not only established thriving businesses but also motivated a new generation of entrepreneurs, contributing to the Indian women entrepreneurs global funding ranking.

Future Prospects for Women Entrepreneurs in India

Growing Opportunities

The prospects for women entrepreneurs in India are bright. With greater access to education, technology tools, and Startup India women entrepreneurship initiatives, women are increasingly coming into the startup ecosystem. Initiatives such as the Startup India program, established in 2016, have identified more than 157,066 startups as of December 2024, with a considerable number led by women. The BHASKAR platform also offers greater accessibility to resources and networks, underpinning the global ranking of women-led startup investments.

Economic and Social Impact

With changing attitudes in society and gender equality becoming a strong movement, women entrepreneurs will increasingly draw more startup funding and support. The success of women-led startups does not only benefit them but the Indian economy as well, as they create jobs and foster innovation across industries.

Conclusion

The Indian women entrepreneurs global funding ranking, placing second in the world in startup funding, is an incredible feat that speaks to their increasing prominence in a competitive environment. With more than $26.4 billion raised by over 7,000 active startups, they are transforming sectors and shattering barriers. Despite the challenges for women-led startups in India, such as funding gaps and cultural biases, Startup India women entrepreneurship initiatives and motivating success stories are opening doors to a promising future. As India continues to promote a conducive ecosystem, women entrepreneurs will be spearheading the march in determining the global ranking of women-led startup investments.