India emerges as global leader, second only to US in funding women-led tech startup

India has emerged as the second-largest recipient of funding for women-led tech startups globally, trailing only behind the United States. According to a report by Tracxn, these ventures have collectively raised a staggering $26.4 billion, with the highest influx recorded in 2021 at $6.3 billion.

Women-led startups in India account for 7.5% of the country's total active startups, with over 7,000 ventures spearheaded by women entrepreneurs.

Bengaluru, widely recognized as India’s IT hub, leads in both the number of women-led startups and the total funding raised. It is followed by Mumbai and Delhi-NCR.

The growth of women-led unicorns in India has been marked by fluctuations. The country witnessed a sharp surge in 2021 with eight new unicorns, followed by five in 2022.

The preceding years saw a steady rise, with three unicorns in 2019 and four in 2020. However, there were no new unicorns in 2017, 2023, and 2024, reflecting inconsistent momentum.

Despite these setbacks, the report highlights that women entrepreneurs continue to push boundaries and drive innovation. However, to sustain and accelerate their growth, stronger financial backing, robust ecosystem support, and structured mentorship programs are essential.

Acquisitions of women-led startups also peaked in 2021, with 45 buyouts, before tapering off to 36 in 2022 and 25 in 2023.

Last year, the number fell further to 16. On the public market front, five women-led startups — MobiKwik, Tunwal, LawSikho, Usha Financial, and Interiors and More — went public in 2024, though no IPOs have been recorded so far this year.

While funding disparities persist, women-led startups in India are setting new industry standards, creating jobs, and redefining entrepreneurship. In 2022, India contributed 15.18% of the global funding for women-led startups, raising $5 billion out of a global total of $32.8 billion.

In 2023, India ranked third in global funding for startups co-led by women, with the US and the UK taking the lead.

Industry leaders call for systemic change

Amidst these developments, Ipsita Dasgupta, Senior Vice President and Managing Director, India Market, HP Inc., has called for urgent action to eliminate systemic barriers restricting women’s participation in the tech industry. Dasgupta underscored that when women take the lead in decision-making — whether as innovators, creators, or executives —business success follows.

However, she pointed to the stark reality of India’s female workforce participation rate, which stands at a mere 40.3%.

"The challenge isn’t a lack of talent—it’s the systemic barriers that limit access and opportunities," Dasgupta remarked, urging the industry to move beyond acknowledgment and implement tangible changes.

Under her leadership, HP India has prioritized hiring, retaining, and investing in women, leading to a substantial increase in female workforce representation from low double digits to one-third of the company's total employees.

A key initiative in this effort is the "Disha" program, which focuses on cultivating leadership skills among high-potential women, helping them advance in their careers.

Dasgupta proudly noted that several key business functions, including HP India’s Supplies product team, Growth, and Strategy teams, are now led by women, showcasing the impact of investing in female talent.

She also emphasized the power of advocacy in driving change, urging industry leaders to actively support and champion women in tech. "The future of technology needs women’s ideas, perspectives, and leadership, and it’s on all of us to make that future a reality," Dasgupta stated.

Her message aligns with a growing consensus that fostering gender diversity is not just a matter of social justice but a crucial strategy for innovation and economic advancement.

As India continues its rise as a global tech powerhouse, the inclusion of women in leadership roles will be instrumental in shaping its trajectory.