India's Startup Boom Will Soar Higher With More Women In Charge

Despite India having one of the world's fastest-growing entrepreneurial ecosystems, women-led startups make up less than 20% of total businesses in India. Even more concerning, women receive only about 6% of venture capital funding.

If you think about this, it is absurd. Women are key economic drivers, not just as consumers but as professionals shaping industries. Their deep market intelligence and leadership in sectors like consumer goods, fintech, health tech, and retail make them uniquely positioned to build successful startups. Women account for 75% of consumer spending decisions in Indian households and are at the forefront of understanding evolving market needs.

Women Understand the New Indian Consumer Better

The reality is that India’s consumer landscape is shifting. The country’s most powerful “new consumer” is the educated, working woman, who is spending more than ever before—not just on essentials but on wellness, beauty, fashion, health tech, and personal finance solutions.

Women entrepreneurs are uniquely positioned to understand these needs firsthand and build businesses that cater to them. In fact, not just Indian consumers, but their understanding of the global audience, coupled with access to digital tools, is enabling them and their ventures to scale beyond borders and expand into global markets like LatAm, the Middle East, and Africa.

But What is Holding Women Back from Unleashing their Full Potential?

Well, there are a few barriers. Lack of funding, lack of mentorship, and lack of family support. Men are encouraged to take risks and be leaders. Data suggests that men start new businesses at a rate 64% higher than women. Women, on the other hand, are always seen as supporters, despite scoring higher on leadership potential on average.

Reuters reports that women tend to found startups focused on the circular economy, social welfare, and healthcare. But funding overwhelmingly goes to AI and deep tech solutions, leaving out the vital sectors where women are innovating. Yet, the success of women-led fintech, D2C, and edtech startups proves they can build high-growth businesses.

Women Are Excelling Beyond Traditionally 'Feminine' Sectors

Women-led startups aren’t just excelling in D2C, beauty, and wellness—they are building and scaling AI, fintech, cloud computing, and edtech unicorns. This growth and success of ventures led by women can be attributed to their ability to be financially disciplined and capital efficient, which are the key factors in building sustainable startups. Studies have also shown that women-led startups generate higher revenue per dollar of investment and prioritize long-term profitability over reckless expansion, making them better positioned for sustainable success.

(Data point: First Round Capital found that women-led startups outperform male-led startups by 63% in terms of return on investment.)

And What Happens When There Are More Women in the Startup World?

Look at the global impact of women-led companies. When women get the space to lead, they create businesses that drive real economic transformation. Whitney Wolfe Herd’s Bumble went public with a $13 billion valuation, proving that women-first platforms could challenge and disrupt male-dominated industries. Sara Blakely’s Spanx redefined the shapewear market, bootstrapped her way to success, and later sold the majority stake for $1.2 billion while ensuring every employee benefited.

The lesson is clear: When women have the capital, network, and freedom to innovate, they build category-defining, game-changing businesses. India cannot afford to keep half its population on the sidelines of entrepreneurship.

The Bottom Line: We Need More Women Entrepreneurs

India’s startup ecosystem doesn’t just need more women for diversity’s sake—it needs them because they build high-impact, high-growth companies. The numbers prove it: Women-led businesses generate higher ROI, scale efficiently, and bring market-first innovations that reshape industries. If we want to see the next wave of global unicorns from India, we need more women at the helm.

Authored by Gayatri Sapru, Founder of Folk Frequency