March 7, 2025, Bengaluru, India – The women in tech startup funding landscape for women-led firms in India has taken a sharp downturn, with investments plummeting to just $1 billion in 2024—a staggering 25% year-on-year decline. This alarming drop, highlighted in the ‘Women-led Startups in India Report 2025’ by Tracxn, signals an urgent need for structural changes in the startup ecosystem.
Despite India being home to over 7,000 active women-led startups, comprising 7.5% of all startups in the country, the financial backing for these ventures remains inconsistent. Since inception, women-led tech startups in India have collectively raised $26.4 billion, with 2021 being the peak funding year at $6.3 billion. However, the downward trend in recent years raises concerns about long-term sustainability.
India’s Global Standing in Women in Tech – Led Startup Funding
India ranked third globally in 2024 for funding raised by women-led startups, behind the US and the UK, contributing 3.96% of the total global funding in this category. This marks a decline from 2022, when India accounted for 15.18% of global women-led startup funding, securing $5 billion against the worldwide figure of $32.8 billion.
Sector-Wise Funding Trends
Among women-led startups, the retail sector emerged as the top recipient of investments, securing $7.8 billion in total funding. Following closely were ed-tech ($5.4 billion) and enterprise applications ($5 billion), highlighting a shift in investor preferences towards scalable digital solutions.
City-Wise Breakdown: Bengaluru Leads the Way
Bengaluru remains India’s startup capital, hosting the highest number of women-led startups and attracting the most funding. Mumbai and Delhi NCR follow closely, solidifying their positions as crucial hubs for female entrepreneurs.
A Rocky Unicorn Journey
India’s women-led unicorns have witnessed fluctuating growth, with 2021 seeing a record surge of 8 new unicorns. However, some years, including 2017, 2023, and 2024, saw no new additions, indicating inconsistent investor confidence.
Acquisition Rates Decline Sharply
The number of acquisitions of women-led startups is also on a downward trajectory. The peak was in 2021, with 45 acquisitions, but this number has steadily fallen—36 in 2022, 25 in 2023, and just 16 in 2024, marking a 30.5% YoY drop last year.
What Lies Ahead?
As India gears up to celebrate International Women’s Day on March 8, the declining funding for women-led startups serves as a wake-up call. While the startup ecosystem has seen promising highs, the recent slump demands immediate action from investors, policymakers, and the private sector to ensure that women entrepreneurs receive sustained and equitable support.
