Women-Led Startups in India Garner Over ₹3,000 Crores in Investments in 2024
11 DEC 2024
The Indian startup ecosystem has witnessed remarkable growth over the years, with women entrepreneurs emerging as pivotal contributors to innovation and economic progress. Insights from the Startup India Final Audit Report 2024 shed light on the evolving trends, achievements, and challenges within the sector, underscoring the growing influence of women-led initiatives.
1733921672.jpg)
Women Entrepreneurs Driving Innovation
The number of startups in India has surged dramatically, particularly since the Narendra Modi government prioritized the sector’s development. Today, India is home to 152,139 registered startups, with government policies and funding schemes playing a crucial role in nurturing this growth. Women entrepreneurs, in particular, have made significant strides, with 48% of startups having at least one female director.
A total of 73,151 startups in India are currently helmed by women, demonstrating their growing presence in the entrepreneurial landscape. Government initiatives have been instrumental in this rise. For instance, 149 women-led startups have received investments amounting to ₹3,107 crores through the Alternative Investment Fund (AIF). Additionally, under the Startup India Seed Fund Scheme (SISFS), launched in 2021, ₹227.12 crores have been allocated to 1,278 women-led ventures.
The Credit Guarantee Scheme for Startups (CGSS), introduced in April 2023, has further boosted female entrepreneurship by providing ₹24.6 crores in loan guarantees. Programs like SIDBI’s Fund of Funds for Startups, which reserves 10% of its capital for women-led initiatives, and WING workshops, which facilitate knowledge sharing, have created a supportive ecosystem for women innovators.
Growth Amid Challenges
Despite the remarkable progress, the sustainability of startups remains a concern. As of October 31, 2024, approximately 5,063 startups—3.3% of the total registered—have ceased operations. Maharashtra recorded the highest number of closures at 929, followed by Karnataka (644) and Delhi (593). States like Uttar Pradesh, Telangana, and Tamil Nadu also witnessed significant shutdowns, while smaller states such as Arunachal Pradesh and Sikkim reported minimal closures.
The challenges faced by startups often stem from financial instability, market saturation, and the absence of scalable business models. These issues underscore the need for continued government support and strategic planning to ensure long-term viability.
1733921672.jpg)
Employment Contributions
Despite the closures, startups in India have contributed significantly to job creation, generating over 16.67 lakh jobs. IT services lead the pack, creating 2,04,119 positions, followed by healthcare and life sciences (1,47,639 jobs). Other sectors such as education, construction, food and beverages, and agriculture also played a vital role in driving employment.
Conversely, niche sectors like passenger experience, dating and matrimonial services, and nanotechnology have produced fewer jobs, with figures ranging from 252 to 1,850.
State-Wise Startup Distribution
Maharashtra remains the frontrunner in startup activity, with 27,014 registered ventures, followed by Karnataka (16,093) and Delhi (15,645). States like Uttar Pradesh, Gujarat, and Tamil Nadu also rank high, while smaller states such as Lakshadweep, Sikkim, and Arunachal Pradesh have seen fewer startups, reflecting the concentration of entrepreneurial activity in urban and economically advanced regions.
MSME Landscape
The MSME (Micro, Small, and Medium Enterprises) sector, a critical component of India’s economy, faces its own set of challenges. While the Udyam portal has streamlined registrations, the rising number of closures is concerning. By November 2024, 61,469 MSMEs had shut down, with micro-units accounting for the majority. Alarmingly, 49,342 closures occurred in the first half of the financial year, highlighting the need for enhanced support for smaller businesses.
Looking ahead, the Indian startup ecosystem has significantly contributed to job creation and innovation. Women entrepreneurs, supported by government initiatives, are playing a great role in this journey. However, the ecosystem’s sustainability challenges must be addressed to ensure long-term success. With women entrepreneurs at the forefront, India’s startup landscape is poised to become a driving force in the nation’s economic future.
1732614033.jpg)
1734173356.jpg)
