India’s startup landscape has solidified its standing as the world’s third-largest hub, following in the footsteps of giants like the US and China, boasting an impressive 61,400 startups. Bengaluru, known as India’s Silicon Valley, emerges as a powerhouse for women-led startups, with a notable 1,783 enterprises, according to Tracxn data. Mumbai and Delhi closely follow suit, with 1,480 and 1,195 women-led startups, respectively.
Despite the exponential growth of the startup ecosystem, a significant gender gap persists. To bridge this divide, a range of initiatives, including incubation programs, grants, and fellowships, are being implemented. Karnataka, at the forefront of innovation, becomes the first state in India to provide a grant-in-aid of Rs 50 lakh, aimed at encouraging innovators and startups without claiming equity in return. Notably, this initiative has propelled women entrepreneurs, with 30% of the recipients being women founders.
Tracxn’s list of the top 10 women-led startups features well-known names like Zomato, Byju’s, Ofbusiness, Upstox, Lenskart, and Open. However, the funding landscape for women-led companies has experienced fluctuations. Funding rounds surged from 171 in 2014 to 460 in 2022, but a sharp decline to 185 rounds occurred in 2023. Intriguingly, funding into women-led startups decreased from 183 startups in 2014 to a mere seven in the current year.
Data also reveals that from 2008 to 2018, there were 14 women-led unicorns in India. Notable examples include Bengaluru-based neobank Open, marked as the 100th unicorn, boasting two women co-founders – COO Mabel Chacko and CFO Deena Jacob. Other unicorns with women co-founders include Nykaa, Mamaearth, Hasura, Pristyn Care, OfBusiness, Mobikwik, The Good Glamm Group, and Livspace.
While Bengaluru maintains its prominence in women-led startups, the broader funding landscape for startups witnesses noteworthy activity. Breathe ESG, a sustainability management startup, secured $315,000 in a pre-seed funding round led by 100X.VC. This funding injection aims to bolster product capabilities, expand offerings, and support global market entry.
In addition, Bengaluru-based medtech startup Inito recently raised $6 million in series A funding led by Fireside Ventures. The funds will facilitate global expansion, AI-driven analytics development, and investment in R&D for new tests. Inito’s smartphone-based platform focuses on providing diagnostic tests for various health concerns, with their flagship product, the Fertility Monitor, offering personalized analytics for women tracking fertility hormones.
As India’s startup ecosystem undergoes dynamic evolution, attention is not only on overall growth but also on addressing gender disparities and fostering innovation across various sectors. The journey towards inclusivity and equality continues, shaping the narrative of India’s startup landscape in the years to come.