India second-best country for women-led start-ups amid global funding decline
What's the story
The global funding landscape for women-led start-ups has taken a major hit in 2024 due to macroeconomic headwinds.
According to a report by start-up research and analytics firm Tracxn, these companies collectively raised $29.6 billion in 2024.
The amount represents an 11% decline from the $33.1 billion raised in 2023 and a worrying 21% decline from the $37.5 billion raised in 2022.
Sector performance
Key sectors and significant investments
In 2024, the Enterprise Applications sector was the most funded segment among women-led start-ups, with $16.1 billion. This was an 8% decline from the previous year and a 5% drop from 2022.
Despite the overall funding drop, a few women-led tech companies witnessed massive investments this year.
Notably, three companies—OpenAI, Abound, and Wiz—secured over $1 billion in funding rounds in 2024.
India's position
India ranks 2nd in funding for women-led start-ups
India ranks second globally in total funding raised by women-founded companies. Behind the US, the total capital mobilization stands at $26.4 billion till date.
The country hosts over 7,000 active women-led start-ups, which make up 7.5% of all active start-ups in India.
These ventures have raised a total of $26.4 billion in funding, with 2021 being the highest-funded year at $6.3 billion.
Investment trends
Leading investors and sectors
Y Combinator, Techstars, and Antler emerged as the most active seed-stage investors in 2024. Lightspeed Venture Partners, General Catalyst, and Accel spearheaded early-stage investments.
Notable Capital, Sapphire Ventures, and Softbank Vision Fund were the leading late-stage investors.
The retail sector has received $7.8 billion in all-time funding for women-led start-ups, followed by Edtech ($5.4 billion) and Enterprise Applications ($5 billion).
Geographical trends
Cities and unicorns
San Francisco ($9.4 billion), New York City ($1.9 billion), and London ($1.8 billion) topped the charts in terms of funding in 2024.
In India, Bengaluru topped both in the number of women-led start-ups and total funding raised till date, followed by Mumbai and Delhi NCR according to Tracxn report.
India's women-led unicorn journey peaked in 2021 with eight new unicorns but none in 2023 or 2024, showing fluctuating momentum.