India's tech startup ecosystem has become the second-largest in the world, next only to the US, in terms of total funding received by women-led companies. So far, these startups have collectively raised a whopping USD 26 billion, as per a report published on Friday.
India currently boasts over 7,000 operational startups that are either started or co-founded by women, which account for 7.5 percent of the nation's overall startup ecosystem.
According to data from Tracxn, a leading startup research and analytics platform, these women-led startups have amassed USD 26.4 billion in funding over the years. The peak funding year was 2021, with investments reaching USD 6.3 billion.
Bengaluru leads as the top hub for women-led startups, both in terms of the number of ventures and total funding raised. Mumbai and Delhi-NCR follow closely behind.
At the international level, Indian startups accounted for 15.18 percent of overall funding in 2022, which was the highest funding year ever for women-founded startups. In that year, the startups in India raised USD 5 billion, versus a global figure of USD 32.8 billion.
India was third globally in terms of funding raised by women co-led startups by 2024, behind only the US and the UK. India contributed 3.96 percent of the overall funding to women-led startups worldwide.
Among sectors, retail is leading the way in terms of investment being attracted by women-founded startups with a combined funding of USD 7.8 billion. Edtech comes in second at USD 5.4 billion and enterprise apps have raised USD 5 billion.
Also, new categories like B2C e-commerce, internet-first brands, and fashion technology are seeing significant action, with a number of women co-founded startups picking up pace.
The report also points to trends in 2021 saw a record high of 45 women-led startups being acquired, which fell 20 percent to 36 in 2022 and then dropped by another 30.5 percent in 2023 to 25. The trend went down further in 2024 when only 16 acquisitions were recorded.
"These start-ups are not only securing significant funding but are also revolutionizing industries, generating employment opportunities, and setting standards for upcoming entrepreneurs," the report observed.
Though there is still a large gap in gender-based funding, these trailblazing women-led start-ups are significantly contributing to the shaping of India's entrepreneurial ecosystem and economic growth.
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