• 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
• 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 of fintech 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

India’s startup ecosystem has undergone a remarkable transformation in recent years, with women emerging as a powerful force within the entrepreneurial landscape.

Of the 1.57 lakh+ startups recognized under the Startup India initiative, nearly half are led or co-led by women, indicating a significant shift in the entrepreneurial landscape. This shift highlights the growing participation of women across diverse sectors and industries.

Notably, 2024 was a pivotal year for women-led startups in India, as funding for these ventures saw a significant increase. In the first half of 2024 alone, women-led startups raised over $523 million across 75 deals, marking an 81% year-on-year growth.

As per Inc42’s Indian Startup Funding Report 2024, by the end of the year, women-led startups had raised more than $930 million across 136 deals, reflecting a 93.75% surge from the $480 million raised in 118 deals the previous year.

“We’re witnessing a notable rise in women-led startups as more women embrace entrepreneurship,” said Munish Malhotra from India Accelerator.

Fintech emerged as the leading sector, securing the largest share of investment at $266.91 million, accounting for 28.7% of the total funding raised by women-led startups during the year. The e-commerce sector followed closely, attracting $212.04 million (22.8% of total funding), while enterprise tech garnered $130.20 million, representing 14% of the total funding raised by women-led ventures.

Interestingly, despite fintech attracting significant funding, it had fewer deals, with just 17 transactions. E-commerce led in deal volume, with 53 deals, followed by healthtech with 13.

The report also highlighted that e-commerce attracted a larger volume of smaller investments compared to other sectors.

Healthtech and cleantech captured 11% and 14.1% of the total funding, amounting to $102.3 million and $130.92 million, respectively. While their share was smaller than the top three sectors, they played a vital role in driving overall funding growth.

What’s Fueling the Change?

According to Malhotra, sectors like direct-to-consumer (D2C) brands, healthcare, and social impact ventures have experienced notable growth under women’s leadership. This trend extends beyond new startups, with established companies also benefiting from women at the helm. A prime example is YogaBar, which has gained significant traction in the wellness sector.

At the same time, there has been a growing interest from female investors supporting women-led ventures. Divya Anand, partner at Stride Ventures, emphasized that when evaluating businesses, it’s not just diversity or gender that matters, but the talent, experience, and scalability of the business.

Recognizing the need for more support, several women-focused funds and initiatives have been launched in India to foster digital inclusion and encourage greater participation of women in the rapidly growing digital economy.

One such initiative is the Women in Digital Economy Fund (WiDEF), launched in 2024 with an initial commitment of $10 million. Supported by the Reliance Foundation, WiDEF aims to empower women across India by improving their access to digital tools, e-commerce platforms, and technology-driven ventures. This initiative is expected to play a key role in bridging the gender gap in India’s tech space and driving 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) are leaving their mark in the investment world, shaping the future of India’s startup ecosystem.

These women investors bring valuable experience and serve as role models, inspiring the next generation of entrepreneurs.