India Ranks Second in Women-Led Startup Funding, Raising USD 26 Billion With over 7,000 active women-led startups, these businesses constitute 7.5% of all active startups in the country
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India has emerged as the second-largest ecosystem for women-led startup funding, surpassing global counterparts except for the United States. According to a report by Tracxn, Indian startups with women founders have collectively raised USD 26.4 billion to date, with 2021 marking the peak year at USD 6.3 billion in funding.
With over 7,000 active women-led startups, these businesses constitute 7.5 per cent of all active startups in the country. Bengaluru leads as the primary hub for women-driven startups, followed by Mumbai and Delhi-NCR, both in terms of startup volume and total capital raised.
Globally, Indian startups contributed 15.18 per cent of total women-led startup funding in 2022, securing USD 5 billion in investment. In 2024, India ranked third, following the US and the UK, representing 3.96 per cent of global funding raised by women-led startups.
Sector-wise, the retail industry has attracted the most investment, amassing USD 7.8 billion in funding. Edtech and Enterprise Applications have also seen substantial backing, securing USD 5.4 billion and USD 5 billion, respectively. Emerging sectors like B2C e-commerce, internet-first brands, and fashion tech continue to see significant traction among women entrepreneurs.
The acquisition landscape has fluctuated, with 2021 seeing the highest number of 45 acquisitions, followed by a steady decline—36 in 2022, 25 in 2023, and only 16 in 2024. While challenges persist in achieving funding parity, the growing influence of women entrepreneurs in India's startup ecosystem is reshaping industries and paving the way for future innovations.
