Bengaluru Leads in Women-Led Startups as India’s Ecosystem Surges Globally

• ByStartupStory     |    November 20, 2023

India’s startup landscape has cemented its position as the world’s third-largest hub, trailing only the US and China, with a staggering 61,400 startups. Bengaluru emerges as the stronghold for women-led startups, boasting 1,783 such enterprises, according to data from Tracxn. Mumbai and Delhi closely follow with 1,480 and 1,195 women-led startups, respectively.

Despite the robust growth of the startup ecosystem, a stark gender divide persists. To bridge this gap, initiatives such as incubation programs, grants, and fellowships are being implemented. Karnataka, as a trailblazer, stands as the first state in India to provide a grant-in-aid of Rs 50 lakh, aiming to encourage innovators and startups without taking equity in return. This initiative has notably propelled women entrepreneurs, with 30% of the winners being women founders.

Tracxn’s list of top 10 women-led startups includes well-known names such as Zomato, Byju’s, Ofbusiness, Upstox, Lenskart, and Open. However, the funding landscape for women-led companies has witnessed fluctuations. The number of funding rounds surged from 171 in 2014 to 460 in 2022, but a sharp decline to 185 rounds occurred in 2023. Intriguingly, funding into women-led startups decreased from 183 startups in 2014 to a mere seven in the current year.

Data also reveals that from 2008 to 2018, there were 14 women-led unicorns in India. Among the notable ones, Bengaluru-based neobank Open, marked as the 100th unicorn, has two women co-founders – COO Mabel Chacko and CFO Deena Jacob. Other unicorns with women co-founders include Nykaa, Mamaearth, Hasura, Pristyn Care, OfBusiness, Mobikwik, The Good Glamm Group, and Livspace.

While Bengaluru maintains its prominence in women-led startups, the broader funding landscape for startups sees noteworthy activity. Breathe ESG, a sustainability management startup, secured $315,000 in a pre-seed funding round led by 100X.VC. This funding will bolster product capabilities, expand offerings, and support global market entry.

Additionally, Bengaluru-based medtech startup Inito recently raised $6 million in series A funding led by Fireside Ventures. The funds will facilitate global expansion, AI-driven analytics development, and investment in R&D for new tests. Inito’s smartphone-based platform focuses on providing diagnostic tests for various health concerns, with their flagship product, the Fertility Monitor, offering personalized analytics for women tracking fertility hormones.

As India’s startup ecosystem continues its dynamic evolution, the attention is not only on the overall growth but also on addressing gender disparities and fostering innovation across various sectors.

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