70% women entrepreneurs face difficulty in attracting talent: CXXO report
What's the story
A recent study by Kalaari Capital, under its CXXO program, sheds light on the changing face of female entrepreneurship in India.
Titled "CXXO State of Female Entrepreneurship in India," the report explores challenges encountered by women founders. It emphasizes the deep-rooted systemic barriers in this space.
The report found that 70% of women founders find it difficult to attract and retain talent, while 40% cite lack of female role models, especially in tech and engineering.
Funding disparity
Funding and bias challenges
The CXXO report highlights a stark funding gap for women-led start-ups.
Between January 2022 and October 2024, just 16% of the total capital raised went to start-ups with female co-founders.
Women co-founded start-ups also consistently received smaller seed cheques—nearly half of what their male-led counterparts received on average.
This inequality creates a vicious cycle where women founders are scrutinized more during pitches, and often lack access to strong investor networks mostly enjoyed by their male counterparts.
Investment bias
Gender bias in investment practices
The report also highlights gender biases in the investment ecosystem.
While 80% of investors admit gender factors into start-up evaluation, only half are willing to improve gender diversity in their deal flow.
Shockingly, 75% of investors assessed only one to three female-led start-ups per quarter, as opposed to over 50 male-led ones.
This absence of women in decision-making roles only worsens the issue with less than 6% of investment firms in India having female general partners.
Societal hurdles
Societal challenges faced by women entrepreneurs
Beyond financial barriers, the CXXO report also highlights societal challenges faced by women entrepreneurs.
Around 22% of women founders reported family pressures affecting their performance, and 30% faced frequent self-doubt at the workplace.
Female leaders are also twice as likely as men to change their leadership style to fit into male-dominated sectors—a step that can undermine their authenticity and confidence.
Findings
Ending on a positive note
Despite the challenges, the CXXO report ends on a hopeful note. It celebrates the increasing number of women founders breaking barriers, especially those from Tier 2+ cities, and the role of initiatives like CXXO in bringing about systemic change.