Women-led startups rise to 18%; 105 female-led firms become unicorn in past five years: Report
Women-led startups rise to 18%; 105 female-led firms become unicorn in past five years: Report
India’s thriving startup ecosystem has seen a significant increase in the number of female founders, turning their entrepreneurial endeavors into successful businesses. A report by WISER (Women in India’s Startup Ecosystem Report) indicates that women-led startups have seen substantial growth, reaching 18% in India over the past five years.
This rise in female-led startups highlights the increasing participation and contributions of women entrepreneurs in India’s dynamic business landscape. It reflects the growing recognition of the potential and talent of women in the startup sector and their ability to innovate, create, and lead successful ventures.
The emergence of these female founders also underscores the importance of gender diversity in the entrepreneurial and tech sectors. It not only brings fresh perspectives and ideas to the table but also fosters a more inclusive and balanced startup ecosystem. 
The report by WISER serves as a positive indicator of the progress made in empowering women in entrepreneurship and promoting gender equality in the business world. It also highlights the potential for further growth and impact of women-led startups in India’s evolving startup landscape.
The growth in the number of startups led by women in India over the past five years is indeed remarkable. In 2017, India had approximately 6,000 startups led by women, representing 10% of the total startup ecosystem. However, by 2022, this number had significantly increased to 80,000, constituting 18% of the total startup landscape. This represents an impressive 8% increase in the proportion of women-led startups in India during that period.
This surge in the number of women entrepreneurs in the startup ecosystem is a positive development that reflects both the opportunities and support available to women in India’s evolving business landscape. It also signifies the growing recognition of women’s leadership and innovation in the startup sector.
This increase demonstrates the potential and talent of women entrepreneurs in India and highlights their ability to create, lead, and scale successful businesses. It also underscores the importance of fostering an inclusive environment that encourages and supports women in entrepreneurship.
Overall, the growth in women-led startups in India is a positive indicator of progress toward gender equality in the business world and the continued dynamism of the country’s startup ecosystem.
The report by WISER indicates that out of the 80,000 women-led startups in India, an impressive 105 of them achieved unicorn status in the span of five years. A unicorn is a term used in the venture capital industry to describe a startup company with a valuation exceeding $1 billion.
This achievement reflects the substantial growth and potential of women-led startups in India’s entrepreneurial landscape. It also underscores the significant contributions of female founders in scaling their ventures to reach the coveted unicorn status. These unicorn startups are a testament to the innovation, leadership, and business acumen demonstrated by women entrepreneurs in India.
The participation of more than 200 startups, including well-known names like Urban Company, Meesho, and Zomato, in the WISER report further highlights the comprehensive and representative nature of the study. This report not only showcases the success stories of women-led startups but also provides insights into the evolving dynamics of India’s startup ecosystem, fostering a more inclusive and diverse entrepreneurial environment.
The Indian startup ecosystem has witnessed a significant surge in funding support for startups led by women entrepreneurs. According to a report, there has been a remarkable 20% increase in funding for female-founded Indian startups between 2017 and the year-to-date (YTD) 2023 period. In 2017, these startups received a total of $5.9 billion in funding, whereas by YTD 2023, the funding had soared to an impressive $21.9 billion.
This substantial increase in funding highlights the growing recognition of the potential and talent of women entrepreneurs in India’s startup landscape. It underscores the willingness of venture capitalists and investors to support women-led startups and their innovative ideas.
The report’s findings also reveal that while the overall number of startups in India has been growing rapidly, the growth rate of women-led startups, both in terms of numbers and funding, has outpaced the industry average. This trend indicates a positive shift in the entrepreneurial landscape, where more women are taking the lead in launching and scaling their businesses.
Aakanksha Gulati, Director of ACT, noted that if this trend continues, there is a strong possibility that the percentage of women-led startups will continue to rise in the coming decade. This is a promising sign for gender diversity in entrepreneurship and the continued evolution of India’s startup ecosystem.
Overall, the increase in funding for women-led startups reflects the potential for greater gender diversity and inclusivity in the entrepreneurial landscape of India. It also underscores the importance of fostering an environment that supports and empowers women entrepreneurs to thrive and succeed in the startup world.
The report highlights a notable shift in the representation of women in leadership positions within startups compared to traditional corporate firms. Startups are currently demonstrating greater gender diversity, with 32% of women occupying managerial positions, in contrast to 21% in corporate organizations. This disparity becomes more pronounced at the highest leadership levels, where only 5% of women hold leadership positions in corporate firms, while 18% do so in startups.
Furthermore, startups led by women founders exhibit a significant difference in gender diversity in senior roles compared to those founded by men. These startups have 2.5 times more women in senior positions, emphasizing the influence of female leadership on fostering an inclusive work environment.
However, despite these promising trends, the report also highlights the need for continued efforts to address gender imbalances in leadership. It reveals that 10 years into their careers, 8 out of 10 men in startups occupy Director-level positions or higher, while only 5 out of 10 women reach similar positions.
These findings underscore the importance of promoting and nurturing women’s career progression within startups and across industries. Achieving greater gender diversity in leadership positions not only contributes to more inclusive workplaces but also brings diverse perspectives and ideas to decision-making processes, ultimately benefiting the overall success and innovation of organizations.
In summary, while progress has been made in promoting women in leadership roles within startups, there is still significant work to be done to achieve gender parity at all levels of leadership. Recognizing and addressing these challenges is essential for creating more inclusive and equitable workplaces in the future.
