Startups founded or co-founded by women bagged $1.1 billion in equity and debt funding in 2023, accounting for a 9.25% share of all private capital raised by startups in India, according to DealStreetAsia’s latest report on the gender funding gap in the country.
The total private capital raised by all startups less than halved to $11.8 billion in 2023 from $26.5 billion in the previous year, owing to an extended funding winter and overall macroeconomic uncertainties, according to Female Founders in India 2023.
Launched on International Women’s Day, this is DealStreetAsia’s third annual report on funding for female founders and co-founders in India. The report features interviews with several female founders who shared the challenges and biases they have experienced.
Female co-founded startups had garnered about $3.46 billion in private funding in 2022 and $6.7 billion in 2021. Their share of funding has been on a decline, dropping from 14.7% in 2021 to 13% in 2022, and now 9.25% in 2023. 
Edtech startup BYJU’S, founded by Divya Gokulnath and Byju Raveendran, led investments in 2023 with its $250 million funding from Davidson Kempner Capital Management, a US-based investment manager. This alone accounted for about 23% of the total capital raised by female-founded startups in the year.
Other prominent deals with at least one female founder included beauty products retailer Mamaearth ($92 million), AI-powered martech startup Pixis ($85 million), public transport technology company Chalo ($57 million), online silver jewellery brand GIVA ($38 million), Mad Street Den ($30 million), AVIOM Housing Finance Corporation ($30 million), and Blue Tokai Coffee Roasters ($30 million), among others.
Meanwhile, startups founded solely by women raised $50.1 million, or a mere 0.4% of total funding bagged by private companies in 2023. In comparison, companies founded solely by women raised $154.8 million in 2022, accounting for a 0.6% share of the total funding raised by startups in the year. The share was lower at 0.25% in 2021.
The founders we spoke to for this report pointed to society’s expectations of women, conscious and unconscious biases, investors preferring male co-founders, and lesser representation of women in the venture capital and private equity industry as some of the key hindrances to the growth of women entrepreneurs.
“Female participation in the workforce and startup ecosystem has increased over the years, but gender bias still exists. If you are a woman in the entrepreneurial space, there is a high probability that your opinions will be challenged. Women entrepreneurs often have to put in extra effort while proving their mettle, primarily because of societal biases like running a business is a man’s forte,” said Rashi Agarwal, co-founder and CBO of Zypp Electric.
Founders were also of the view that times are changing and women are starting businesses at a higher rate than men and achieving success with their innovations and unique perspectives. Moreover, women-led startups are gaining attention for their ability to address market needs that may have been overlooked earlier.
“Women-led startups are gaining attention for their ability to address market needs that may have been overlooked earlier. What’s more heartening is that the entrepreneurial ecosystem is becoming more inclusive, providing women with greater access to mentorship, networking opportunities, and resources. Numerous success stories of women entrepreneurs who have shattered glass ceilings and achieved remarkable milestones are inspiring a new generation of female founders,” said Kanika Gupta Shori, co-founder and COO of Square Yards.
The DealStreetAsia report also looked at funding secured by female-founded startups with a female CEO. These startups accounted for about 14.5% of the total funding raised by female-founded startups.
The Female Founders in India 2023 report provides:
- Data on fundraising by female-founded startups in 2022 and comparison with 2023
- Fundraising share of cities, verticals and funding stages
- Deal volume by cities, verticals and funding stages
- Data on fundraising by startups with only female founder(s)
- Data on fundraising by female-founded startups with a female CEO
- A list of top dealmakers among female-founded startups
- Interviews with female founders on their entrepreneurship journey and challenges