Women-led startups attract more funding as ecosystem expands

Women-led startups in India are seeing increasing support through government-backed funding schemes, even as their presence in the country’s startup ecosystem continues to expand, Union minister of state for commerce and industry Jitin Prasada said in a written statement in the Lok Sabha on Tuesday.

Nearly half of India’s recognized startups—1,02,054 out of 2,12,283—now have at least one woman director or partner, shows latest data from the commerce ministry, reflecting a steady rise in women’s participation in entrepreneurship.

The development assumes significance as it comes a decade after the launch of the Startup India initiative in January 2016, which aimed to build a supportive ecosystem for innovation, ease regulatory burdens, and improve access to funding for new businesses.

Government support

Government-backed funding has also scaled up across stages, the reply said. Under the Fund of Funds for Startups (FFS), investments in women-led startups have increased in recent years, rising from 333.96 crore in 2020 to 914.47 crore in 2025, taking cumulative investment to around 2,995 crore.

The FFS, operationalized through Small Industries Development Bank of India (SIDBI), provides capital to Sebi-registered alternative investment funds, which in turn invest in startups, helping crowd in private capital.

Early-stage support through the Startup India Seed Fund Scheme (SISFS) has also seen strong participation, with nearly half of the 592 crore approved funding going to women-led startups, it said.

The scheme focuses on providing financial assistance through incubators for proof-of-concept, prototype development, and market entry.

Under the Credit Guarantee Scheme for Startups (CGSS), loans amounting to about 925 crore have been guaranteed to startup borrowers so far, including 39 crore for women-led startups, supporting access to credit through institutional channels.

The data also shows that of the 6,789 recognized startups that have been classified as closed, 2,950 had at least one woman director or partner.

State-wise trends indicate that women-led startups are concentrated in major startup hubs such as Maharashtra, Karnataka, Delhi, Uttar Pradesh, and Gujarat, while states such as Telangana, Tamil Nadu, and Kerala have also seen steady growth in recent years.

The ministry said it continues to strengthen the startup ecosystem through a combination of schemes supporting different stages of business, including equity funding via FFS, seed capital through the SISFS, and credit guarantees under the CGSS.

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