The State of Women's Entrepreneurship in India 2023: 10 stats that defined the year

The economic case for promoting women entrepreneurs in India is unquestionable. If India has to grow at a high rate of 9-10% per annum year after year for three decades or more, it can't happen without women, and without more women becoming entrepreneurs. 

Women constitute almost half the population in India. However, their share in the startup ecosystem as founders has a long way to go to level the field.

The Indian startup ecosystem is the third largest in the world. However, a mere 18% of the 27,000-odd startups in India have women founders. An economy with a better gender mix of entrepreneurs is likely to see a surge in creativity, innovation, and technological advancement.

Unfortunately, the conversion rate is not high. Rampant gender bias and, more importantly, the lack of investor confidence because of preconceived notions that women’s primary focus is on their family, and that they aren’t as committed to their job as men, are the main obstacles. 

So, what are the latest numbers from the women entrepreneurship landscape? How can we make it easier for women to start businesses? Here are 10 insights from our report ‘The State of Women's Entrepreneurship in India 2023’ that gives us a peek into the key numbers that are defining the women entrepreneurship ecosystem and  the challenges and opportunities for women-led enterprises.

Investors dialled down on deal volumes

The women's investment landscape witnessed a dramatic shift in 2023, painting a picture of caution and uncertainty. Deal volume plunged by a staggering 34.58% to 174 deals, compared to 266 in 2022. The slowdown reflected on the overall landscape as well, suggesting that investors and ventures were more cautious about engaging in startup funding.

Quantum of funding offered little solace

It wasn't just the number of deals that took a hit. The total amount raised in 2023 nosedived by a drastic 73.9% to $530 million - down from over $2 billion in 2022. Women-founded startups and businesses struggled to attract the financial backing they had once enjoyed, leading to a noticeable decline in the overall investment pool.

Number of investors was down by 41%

2023 saw 370 unique investors take part in funding women-led startups. These include top VC firms, angel investors and even debt funding houses. While the number may be significantly down by 41% (635 unique investors participated in 2022), the quantum of early-stage deals points to a down-but-far-from-out scenario for women founders.

Early-stage startups got the largest slice of the pie

Early-stage capital is essential for building a robust startup ecosystem. By investing in early-stage startups, investors contribute to the growth of the ecosystem by nurturing and supporting new ventures. This, in turn, attracts more investors, accelerators, incubators, and other support organisations that further strengthen the ecosystem.

D2C emerged as the preferred sector 

With 45 out of 174 deals, D2C has emerged as a haven for women entrepreneurs. Interestingly, women have also emerged as key drivers of the sector - both as sellers and buyers.  Given that only 18 out of the 108 Indian unicorns are co-founded and led by women, the D2C space presents potential for promising female founders. 

Retail led deal volumes

Retail startups founded by women clocked 55 deals in 2023 with 45 deals for D2c and 10 for ecommerce. Close on the heels were healthtech startups, which recorded 18 deals, followed by fintech at 13 deals. There were no deals in fashion, gaming, and energy sector startups. However, notably, there were three deals for the transportation sector, up from no deals in 2022.

Fintech led deal size

When it came to deal sizes, fintech & financial services led the roost with nearly $3 billion in funding. This was followed by ecommerce with 35 deals valued at $716 M+; followed by transportation, with 10 deals valued at $631 M+.

Delhi-NCR beat Bengaluru by number of deals

In a strong contrast to the overall startup landscape, Delhi-NCR, with 46 deals for women-founded startups, beat Bengaluru (42) by four deals. Mumbai, with 35 deals, was at a comfortable third place.

Delhi beat Bengaluru by deal size too

Also in sharp contrast to the overall startup landscape, Delhi-NCR beat both Mumbai and Bengaluru in terms of deal sizes with women-founded startups in each city raising $242.5 million, $110.8 million, and $104 million respectively. 

Two of the top angel investors in women were women

Vineeta Singh, Kunal Shah, and Namita Thapar head the angel Investor leaderboard with 5, 4 and 3 deals each, respectively for women-founded startups. What’s interesting about this is that two of the top angel investors are women. While a sizable number of these deals were undisclosed, according to YourStory Research, the Indian startup ecosystem saw women investors help infuse $608 million across 325 deals in a span of 90 months (between January 2015 and December 2023.

Download The State of Women's Entrepreneurship in India 2023 report here.