India now boasts about 76,000 startups led by women, many from Tier 2 and Tier 3 cities, a sign of a powerful shift in India’s entrepreneurial landscape. That’s nearly half of India’s recognized startups, showing how women are reshaping innovation across regions, not just big cities.
Growth Driven by Grassroots Innovation
Union Minister Jitendra Singh announced these figures at the Viksit Bihar conference in Patna on July 19, 2025. He underscored that this surge is not limited to metro hubs, but is powered by women entrepreneurs from smaller towns and rural areas stepping into startup leadership roles.
Policy Push & Financial Support Fueling the Momentum
Government support has been crucial. As of October 31, 2024, over 73,000 startups with at least one woman director were recognized under the Startup India initiative, representing almost half of all registered startups in the country . In tandem, the Economic Survey 2024–25 revealed a rise in female labour participation from 23.3% in 2017‑18 to 41.7% in 2023‑24, laying a foundation for entrepreneurship.
Funding & Sector Trends for Women Founders
Though active women-led startups number over 7,000, about 7.5% of India’s total tech startups, they’ve collectively raised around $26.4 billion, making India the second-largest ecosystem globally for women-led startup funding after the US.
In 2024 alone, women-led startups raised roughly $930 million across 136 deals, a 94% jump from $480 million in 2023. Fintech, e‑commerce, enterprise tech, healthtech, and cleantech led in deal volumes and funding incrementally.
Tier‑2/3 Cities Powering the Shift
Sher‑ towns and second/third-tier cities are increasingly producing women founders. As Minister Singh noted, this new wave goes beyond urban centers, with smaller cities emerging as breeding grounds for innovation under women’s leadership.
Why It Matters for India’s Future
This modest shift in entrepreneurship is real and expanding:
1. Job creation: Startups support economic inclusivity and job development in India.
2. Regional balance: Smaller cities are seeing growth, which leads to more varied innovation in a variety of industries.
3. Gender equality: India plans to shift from charitable initiatives to women-led economic growth with women in leadership roles.
Takeaways for Entrepreneurs and Policymakers
- Women-led startups now form a significant portion of India’s startup base, especially outside metros.
- Government schemes like Startup India, SISFS, credit guarantee programs, and targeted financial inclusion initiatives are driving early-stage growth.
- While funding still lags behind male founders in quantity and frequency, year-on-year gains are promising.
- Continued efforts in mentorship, access to capital, ecosystem support in smaller cities, and skill development will deepen this trend.
Also Read: Gati Expands MSME Logistics with ONDC & EVs
