India ranks second after US in all-time funding for women-led tech startups: Tracxn report

Indian tech startup ecosystem ranks second after the US in terms of all-time funding raised by companies with women founders, with a total capital mobilisation of $26 billion seen in this space till date, according to Tracxn. The report by the startup research and analytics firm further revealed that India is home to over 7,000 active women-led startups, accounting for 7.5% of all active startups in the country.

These ventures have collectively raised $26.4 billion in funding, with 2021 being the highest-funded year at $6.3 billion.

On a global scale, 2022 saw the highest funding contribution from Indian startups at 15.18%. That year, women-led startups in India raised $5 billion, compared to $32.8 billion globally.

In 2024, India ranked third globally in terms of funding raised by startups co-led by women, after the US and the UK, accounting for 3.96% of funding raised by women-led startups across the globe.

According to the report, the retail sector took a strong lead based on investments raised by women-led startups, securing $7.8 billion in all-time funding. Edtech (at $5.4 billion) and Enterprise Applications ($5 billion) followed closely.

Sub-sectors such as business to consumer e-commerce, internet-first brands, and fashion tech are seeing significant activity, with several startups co-led by women, it said.

Tracxn found that Bengaluru leads in both the number of women-led startups and total funding raised to date, followed by Mumbai and Delhi NCR.

India's women-led unicorn journey has experienced highs and lows, marked by a remarkable surge in 2021 with eight new unicorns and steady growth in 2019 (three), 2020 (four), and 2022 (five). However, 2017, 2023, and 2024 saw no new unicorns, indicating fluctuating momentum.

"Despite these setbacks, women entrepreneurs continue to drive innovation," the report said, adding that strong financial backing, mentorship, and ecosystem support is crucial to foster a more consistent rise in women-led unicorns.

The highest number of acquisitions of women-led startups was recorded in 2021, with 45 buyouts.

However, this number dropped to 36 in 2022, and further decreased to 25 in 2023.

In 2024, the number of acquisitions was at 16.

In 2024, five women-led startups went public: MobiKwik, Usha Financial, Tunwal, Interiors and More, and LawSikho. As of now, 2025 has not seen any IPOs.

"These startups are not only securing massive funding but also redefining industries, generating employment, and setting new benchmarks for future entrepreneurs," the report noted.

While the startup ecosystem still has a long way to go in bridging the gender funding gap, these trailblazers are proving that women-led startups are driving India's growth story, as per Tracxn.