Women-Led Startups See 94% YoY Surge In Funding In 2024

India’s startup ecosystem has seen an extraordinary transformation in recent years, with women emerging as a powerful force in the entrepreneurial landscape. 

Of the 1.57 Lakh+ startups recognised under the Startup India initiative, nearly half are led or co-led by women, signalling a significant shift in the entrepreneurial landscape. This change reflects women’s increasing participation across sectors and industries.

It is imperative to mention that 2024 was a landmark year for women-led startups in India, with funding for these ventures experiencing a marked increase. In the first half of 2024, women-led startups raised over $523 Mn across 75 deals, up 81% year-on-year.

According to Inc42’s Indian Startup Funding Report 2024, by the end of 2024, women-led startups had raised more than $930 Mn across 136 deals, representing a 93.75% increase from the $480 Mn raised across 118 deals a year ago.

“We’re witnessing a significant rise in women-led startups as more women step into entrepreneurship,” Munish Bhatia from India Accelerator said.  

Fintech emerged as the leading sector, securing the largest share of investment at $266.91 Mn, accounting for 28.7% of the total funding raised by women-led startups during the year. Close on the heels was the ecommerce sector, which attracted $212.04 Mn (22.8% of the total funding), and enterprise tech, which garnered $130.20 Mn, comprising 14% of the total funding raked in by women-run ventures. 

Interestingly, although fintech attracted substantial funding, it saw fewer deals, with just 17 transactions. Ecommerce led in deal volume, with 53 deals, followed by healthtech with 13. 

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The Inc42 report also suggests that ecommerce attracted a larger number of small investments compared to other sectors.

Healthtech and cleantech captured 11% and 14.1% of total funding, amounting to $102.3 Mn and $130.92 Mn, respectively. While their share is smaller than that of the top three sectors, they played a crucial role in giving a boost to overall funding.

What’s Catalysing The Shift?

According to Bhatia, direct-to-consumer (D2C) brands, healthcare, and social impact ventures have seen significant growth under the leadership of women. Moreover, this trend is not limited to new startups, established players are also benefiting from women at the helm. A prime example is YogaBar, which has gained significant traction in the wellness sector. 

Meanwhile, noting a growing interest from female investors in supporting women-led ventures, Divya Anand, partner at Stride Ventures, underlined that it is not simply diversity or gender that matters when evaluating businesses but talent, experience and scalability of the business. 

Recognising the need for greater support, several women-centric funds and initiatives have been launched in India to foster digital inclusion and promote women’s participation in the growing digital economy. 

One such initiative is the Women in Digital Economy Fund (WiDEF), launched in 2024 with an initial commitment of $10 Mn. Backed by the Reliance Foundation, WiDEF aims to empower women across India by enhancing their access to digital tools, ecommerce platforms and technology-driven ventures. 

This initiative is expected to play a pivotal role in narrowing the gender gap in India’s tech space and promoting inclusive growth.

The rise of women-led startups in India is also reflected in the increasing number of female investors. Women like Swati Nangalia Mehra of Sixth Sense Ventures, Ghazal Alagh, and Vineeta Singh (both founders-turned-investors), among others, are making their mark in the world of investing, helping to shape the future of India’s startup ecosystem. 

These women investors not only bring years of experience but also serve as role models for the next generation of entrepreneurs.

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