India Ranks 2nd Globally in Funding for Women-Led Startups: Tracxn Report

According to a report by Bengaluru(Karnataka) based Indian tech startup research and analytics firm Tracxn Technologies Limited, India ranks second globally, after the United States of America (USA) in terms of total funding raised by companies with women founders.

• The global tech sector has over 69,000 women-founded tech companies, which have collectively raised USD 309 billion in funding. However, in 2024, only 11.7% of total funding went to women-led startups due to economic challenges.
• India has over 7,000 active women-led startups, accounting for 7.5% of all startups in the country with a total capital mobilization of USD 26.4 billion.

Note: In 2024, India ranked 3rd globally in terms of funding raised by startups co-led by women, after the USA and the United Kingdom(UK).

Key Highlights:

i.Globally, women-led tech companies secured USD 29.6 billion in funding in 2024, reflecting an 11% decline from USD 33.1 billion in 2023 and a 21% drop from USD 37.5 billion in 2022.

ii.In 2024, the Enterprise Applications, Life Sciences, and FinTech sectors attracted the highest investments among women-led startups. Enterprise. Applications received USD 16.1 billion, though this marked a decline of 8% from USD 17.5 billion in 2023 and a 5% decrease from USD 16.9 billion in 2022.

iii.Globally, 14 new women-led unicorns (startups valued over USD 1 billion) emerged in 2024, marking a 134% increase from 6 unicorns in 2023.

iv.The highest number of acquisitions was recorded in 2021 (45 buyouts). However, this dropped to 36 in 2022, 25 in 2023, and 16 in 2024.

v.The top cities with the highest funding for women-led startups in 2024 were:San Francisco(the USA) – USD 9.4 billion, New York City(the USA) – USD 1.9 billion, London(the UK) – USD 1.8 billion.

India Scenario:

i.In India, the Retail, Edtech, and Enterprise Applications sectors received the highest investments among women-led startups. Retail secured USD 7.8 billion, followed by Edtech with USD 5.4 billion and Enterprise Applications with USD 5 billion.

ii.In 2024, five women-led startups launched their Initial Public Offerings (IPOs) and went public: MobiKwik, Usha Financial Services Limited, Tunwal E Vehicle India Private Limited, Interiors and More Ltd and LawSikho.

iii.India has seen fluctuations in the number of unicorn startups (companies valued at over USD 1 billion) led by women. The strongest year was 2021, with eight new unicorns. However, no new women-led unicorns emerged in 2023, or 2024.

iv.Among Indian cities, Bengaluru leads in both the number of women-led startups and the amount of funding raised. Mumbai(Maharashtra) and Delhi NCR (National Capital Region) follow in second and third place, respectively.

v.Meanwhile, the number of acquisitions declined over recent years. In 2022, there were 36 acquisitions of women-led startups, which dropped to 25 in 2023 and further to 16 in 2024.

Note: To boost women-led businesses, the Government of India (GoI) has introduced various initiatives. One such program is the Trade Related Entrepreneurship Assistance and Development (TREAD) scheme, which provides financial aid through Non-governmental Organisations (NGOs).

About Tracxn Technologies Limited:
Chairperson and Managing Director (MD)- Neha Singh
Headquarters– Bengaluru, Karnataka
Established– 2013