Women-led startups see unprecedented growth in funding in 2024

The Indian startup ecosystem has experienced a remarkable transformation in recent years, with women entrepreneurs emerging as a formidable force in the business world. According to the Indian Startup Funding Report 2024 by Inc42, funding for women-led startups surged by an impressive 93.75% year-on-year, rising from $480 million in 2023 to $930 million in 2024. This growth reflects the increasing participation of women not only as founders and co-founders but also as investors in the burgeoning startup space.

In 2024, female entrepreneurs secured funding across 136 deals, a significant jump from 118 deals the previous year. This surge in funding is seen as a positive shift towards gender diversity in the Indian startup ecosystem, with women playing key roles in shaping the future of various sectors, particularly in fintech, e-commerce, and health tech.

The fintech sector took the lion’s share of funding for women-led startups, accounting for 28.7% of the total funding or approximately $266.91 million. This was achieved through just 17 deals, showcasing the sector’s high growth potential and investor confidence in women-led ventures. The e-commerce sector came in second, raising $212 million, which constitutes 22.8% of the total funding, spread across 53 deals. In third place was enterprise tech, which secured $130 million or 14% of the total funding.

The health tech and cleantech sectors also performed well, raising $102.3 million (11%) and $130.93 million (14.1%), respectively. These sectors reflect the growing interest in sustainable and health-focused innovations driven by women entrepreneurs.

The rise in women-led startups has not been limited to founders. A growing number of women investors are increasingly backing these ventures, further solidifying their presence in the ecosystem. This trend is seen as a vital step in ensuring greater representation and opportunities for women in leadership roles across industries.

In addition to funding, 2024 also marked a significant milestone for Indian startups with the launch of 13 initial public offerings (IPOs). These startups collectively raised over Rs 29,200 crore from the stock market, with Rs 14,672 crore from fresh issues and Rs 14,574 crore through Offer for Sale (OFS).

Among the high-profile IPOs were TAC Security, MobiKwik, Unicommerce, Swiggy, Ola Electric, Digit Insurance, and Ixigo. Notably, 10 of these were mainboard IPOs, while three were SME IPOs, signaling a robust future for Indian startups in the public market. With women entrepreneurs making strides across various sectors and funding reaching record highs, the Indian startup ecosystem is poised for continued growth, led by dynamic, innovative, and trailblazing female leaders.