Bengaluru Leads with 1,783 Women-Led Startups

• 21 Nov 2023

Amid India's burgeoning startup landscape, Bengaluru emerges as the hub for women-led startups, boasting 1,783 ventures, surpassing Mumbai (1,480) and Delhi (1,195), according to Tracxn data.

• Despite Karnataka's progressive policies fostering risk-taking, the gender gap persists, prompting initiatives like grants and fellowships to support women founders.

Key Points

• Startup Ecosystem Dynamics: India's startup ecosystem has grown to become the world's third-largest, with over 61,400 startups, trailing only the US and China in global rankings.
• Policy Framework Support: Karnataka stands out as the first state to provide a grant-in-aid of Rs 50 lakh to encourage early-stage funding for startups without taking equity, with 30% of recipients being women founders.
• Top Women-Led Startups: Tracxn identifies Zomato, Byju’s, OfBusiness, Upstox, Lenskart, and Open among the top 10 women-led startups in India.
• Funding Landscape: The funding landscape for women-led startups has witnessed a surge, with rounds increasing from 171 in 2014 to 460 in 2022. However, in 2023, the number dropped to 185, and funding decreased from 183 startups in 2014 to just 7 in the current year.
• Women-Led Unicorns: From 2008 to 2018, 14 women-led unicorns emerged. Bengaluru-based neobank Open, Nykaa, Mamaearth, Hasura, Pristyn Care, OfBusiness, Mobikwik, The Good Glamm Group, and Livspace are among the unicorns with at least one woman co-founder.
• Shift in Funding Trends: While the number of rounds and funding into women-led startups surged in recent years, 2023 witnessed a decline, emphasizing the need for sustained support for women entrepreneurs in India's dynamic startup ecosystem.