The funding landscape for women-led startups in India has been quite dynamic in recent years, marked by notable fluctuations. According to a report by Tracxn, the number of funding rounds in women-led companies saw a remarkable increase from 171 in 2014 to 460 in 2022. However, this trend took a sharp downturn in 2023, plummeting to 185 rounds.
This year, the funding scenario for women-led startups has seen a dramatic decrease, from 183 startups funded in 2014 to only 7 up to the present. This contrasts starkly with the previous surge, signifying a challenging landscape for these ventures.
Among India's top 10 women-led startups are prominent names like Zomato, Byju’s, Lenskart, and Zerodha, reflecting the strength and diversity of businesses led by women entrepreneurs.
City-wise statistics also shed light on the distribution of women-led startups, with Bengaluru hosting a significant 1783 such startups, while Ahmedabad counts a total of 181, showcasing regional variations in entrepreneurial activity.
In a broader context, India has witnessed a decline in tech funding for the third consecutive quarter this year. The July-September period of 2023 emerged as the least-funded quarter in the last five years, with a total of $1.5 billion raised. This marks a notable 29% decrease from the previous quarter and a staggering 54% decline compared to the same period in 2022, as per Tracxn's findings.
The reduction in funding is observed across all stages of startups. Late-stage rounds witnessed a 33% reduction, while early-stage and seed-stage funding saw steep declines of 74% and 75%, respectively, compared to the same quarter last year. These figures underscore a challenging funding environment, impacting startups at various stages of growth and development.
(With Agency Inputs)