Women-led startups attract more funding as ecosystem expands
Women-led startups in India are seeing increasing support through government-backed financing 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.
Almost half of India’s well-known startups (1,02,054 out of 2,12,283) now have at least one female director or partner, reflecting the steady rise in women’s participation in entrepreneurship, according to the latest data from the commerce ministry.
This development assumes significance as it comes a decade after the launch of the Startup India initiative in January 2016, which aims to create a supportive ecosystem for innovation, ease regulatory burdens and improve access to finance for new businesses.
government support
The response stated that government-backed financing was also increasing in stages. Investments in women-led startups under the Fund of Funds for Startups (FFS) have increased in recent years. ₹333.96 crore in 2020 ₹914.47 crore in 2025, taking cumulative investment to 2025 approximately ₹2,995 crore.
Launched through the Small Industries Development Bank of India (SIDBI), FFS provides capital to Sebi-registered alternative investment funds, which in turn help the private equity crowd by investing in startups.
Early stage support through the Startup India Seed Fund Scheme (SISFS) has also seen strong participation; almost half of the participants ₹It was stated that 592 crore approved funding went to women-led startups.
The program focuses on providing financial assistance through incubators for proof of concept, prototype development and market entry.
Under the Credit Guarantee Scheme (CGSS) for startups, approximately ₹925 crore has been guaranteed to early stage borrowers so far. ₹39 crore for women-led initiatives that support access to credit through corporate channels.
The data also shows that of the 6,789 well-known startups classified as closed, 2,950 have at least one female director or partner.
State-wise trends show 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 recorded steady growth in recent years.
The ministry said it continues to strengthen the startup ecosystem through a combination of programs that support different stages of the business, including equity financing through FFS, seed capital through SISFS and loan guarantees under CGSS.
