Aishwarya Arunkumar and Shweta Bhatia: Pioneering Women in India’s Startup Ecosystem

India’s startup landscape is undergoing a remarkable transformation, with women founders and co-founders playing an increasingly significant role. According to a Nasscom-Zinnov report, the share of women-founded or co-founded stratup has nearly doubled from 10 percent in 2016 to an impressive 18 percent in 2022. These women entrepreneurs have demonstrated their prowess, achieving similar success rates as their male counterparts across all funding stages, from seed to late-stage funding. The rise of women founders in India is not only reshaping the start-up ecosystem but also contributing to employment generation and economic progress.

In 2007, when Eight Roads initiated its investments in India, women founders seeking venture or private equity funding were a rarity. Fast forward to the present, and a significant 24 percent of companies backed by Eight Roads have a woman founder or co-founder, many of whom also hold the CEO position. This shift reflects the evolving entrepreneurial landscape and the growing influence of women in business. Women founders in India are catalysing a cultural transformation, whether by establishing innovative ventures or serving as trailblazers for future generations of entrepreneurs. Their contributions to business have not only fostered job creation but also propelled economic growth.

Rising Role Models:

Compared to a decade ago, women starting companies today have more role models to inspire them, transcending various sectors. Notable women leaders like Kiran Mazumdar-Shaw, the founder and CEO of Biocon, who pioneered India’s first listed biotechnology company, or Falguni Nayar, the founder and CEO of Nykaa, who made waves in e-commerce, have shattered glass ceilings in traditionally male-dominated domains. Today, more women are pursuing professional courses at prestigious institutions, specializing in fields they are passionate about. This has led to a growing talent pool of ambitious women who, armed with education and significant work experience, are more inclined to take the entrepreneurial leap.

Indian society is also evolving to be more accepting of women’s participation in the workforce. Companies are implementing structures and policies that enable women to work and progress in their careers. Support from partners and family members, who share caregiver responsibilities, further facilitates women in pursuing their professional ambitions. The transition from founder or co-founder to CEO represents a critical milestone in the entrepreneurial journey. With the right support and access to opportunities, women are increasingly able to fulfill their entrepreneurial aspirations.

Investors are recognizing the potential of women-led startups in India. Data from Pitchbook reveals that the total funding received by women-led startups surged from $850 million in 2016 to an impressive $3.9 billion in 2022. This heightened investor interest stems from witnessing a critical mass of women-led businesses achieving outstanding growth, profitability, and delivering successful outcomes for shareholders. Despite significant progress, there is still much work to be done. Some women remain hesitant to embark on entrepreneurial journeys, grappling with societal expectations and stereotypes about their ambition and resilience. Overcoming these challenges and addressing the continuous hardships associated with building a business are vital steps toward fostering greater gender diversity in entrepreneurship.

As active investors in India’s technology and healthcare sectors for over 15 years, Eight Roads has had the privilege of collaborating with inspirational women leaders. The past decade has ushered in significant change, reflecting the promise of a “new” India. The Indian government has taken commendable steps to support women founders, implementing schemes such as Stand-Up India, the Atal Innovation Mission, Pradhan Mantri Mudra Yojana, and establishing incubation centres and skill development programs like the Women Entrepreneurship Platform by Niti Ayog. As we look ahead, we can anticipate more women embarking on entrepreneurial journeys, achieving remarkable successes, and contributing to India’s economic growth. It is crucial for our country, society, and ecosystem to remain supportive, ensuring that women can not only be founders but also CEOs of their own companies.