Women led startups funding falls, what’s new?

It’s International Women’s Day, and I wish each and every woman out there trying to make her mark in the world. But, like any other women’s day, we’re still talking about the gender gap, the glass ceiling, and lack of funding for women entrepreneurs.

According to data from Tracxn, women-led tech startups in India have raised over US$23 billion to date. Funding into women-led tech startups fell 75% to US$1.1 billion in 2023 from US$4.5 billion in 2022. And this is when the Indian tech startup ecosystem ranks second after the US, in terms of funding raised by companies with women founders.

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The Delhi-NCR region takes the lead in terms of the number of women-led startups formed to date, followed by Bengaluru and Mumbai. The peak occurrence of women-led Unicorns was observed in 2021, with over 65% of these startup unicorns led by women emerging in the years 2021 and 2022.

For The Tech Panda audience, this Women’s Day represents more than a call to action; it symbolizes the dawn of an era where gender equality in startup funding in the region becomes a prioritized goal. We advocate for a tech ecosystem that champions diversity, ensuring women founders are recognized not as a quota but as essential drivers of innovation and growth

Maryam A Hassani, Co-founder and CEO of Zealous

Maryam A Hassani, Co-founder and CEO of Zealous, an AI-native networking tool in the MENA region, told The Tech Panda, “In 2023, the tech startup industry began to witness a gradual shift toward gender-balanced investment, yet women-led startups received a mere fraction of total venture capital funding—a stark reminder of the disparities still at play. As 2024 approaches, I envision a pivotal change in this arena, with a marked increase in investments directed towards women-led tech initiatives.

“For The Tech Panda audience, this Women’s Day represents more than a call to action; it symbolizes the dawn of an era where gender equality in startup funding in the region becomes a prioritized goal. We advocate for a tech ecosystem that champions diversity, ensuring women founders are recognized not as a quota but as essential drivers of innovation and growth. Let’s commit to transforming the landscape of tech startup investments, making equality and inclusivity the cornerstones of our industry and region.”

Chetana C., Director at Quantum Energy says addressing gender disparities in access to finance, land, and technology is crucial for unleashing the entrepreneurial spirit of millions of Indian women.

Ultimately, by investing in women, India can achieve not only greater economic prosperity but also a more prosperous future for all its citizens

Chetana C., Director at Quantum Energy

“Promoting women’s participation in decision-making processes at all levels of society can lead to more inclusive and effective governance. Ultimately, by investing in women, India can achieve not only greater economic prosperity but also a more prosperous future for all its citizens. As the statistics suggest, India has one of the largest opportunities in the world to boost GDP by advancing women’s equality, with a potential addition of $770 billion to the GDP by 2025.”

Serine Loh, Head of Culture & Talent, APAC, Qlik, says “As we celebrate International Women’s Day, we would like to emphasize the importance of recognizing and celebrating the diversity, achievements, and contributions of women from all backgrounds, identities, and experiences.

It means ensuring that the voices and experiences of all women, including those from marginalized communities such as women of color, LGBTQ+ women, women with disabilities, and women from different socioeconomic backgrounds, are provided with spaces and opportunities for dialogue, empowerment, and advocacy that are inclusive of all women, regardless of their race, ethnicity, sexual orientation, gender identity, or ability

Serine Loh, Head of Culture & Talent, APAC, Qlik

“It means ensuring that the voices and experiences of all women, including those from marginalized communities such as women of color, LGBTQ+ women, women with disabilities, and women from different socioeconomic backgrounds, are provided with spaces and opportunities for dialogue, empowerment, and advocacy that are inclusive of all women, regardless of their race, ethnicity, sexual orientation, gender identity, or ability.”

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While investors need to look at women led startups with gender-equal eyes, women must keep at it. They cannot resign themselves to the mundane and easy. I am sure there will be one International Women’s Day when I’ll write something different.