Breaking Barriers: CXXO report highlights the state of female entrepreneurship in India – CNBC TV18
CXXO is a Kalaari Capital initiative aimed at expanding the funding pool for Female Founders, champion their ventures, and ensure they have a meaningful seat at the table.
“The environment for women founders in India’s startup ecosystem has evolved significantly, with more women entering the ecosystem than ever before. Key trends include more women leading unicorns, less family pressure holding them back, and a growth in Female Co-founded startups from tier 2+ cities. While opportunities are expanding, significant challenges remain,” Vani Kola MD, Kalaari Capital said in the foreword to the report.
“Biases—both conscious and unconscious—continue to impact women entrepreneurs’ journeys. Women-led startups often face challenges in securing seed cheques, fair evaluations, and getting the benefit of the doubt, making it difficult to get their first break. They encounter a smaller funding pool, limited access to networks, and gender bias during pitch evaluations, making it even harder to earn their seat at the table. The silver lining? Women entrepreneurs are emerging from these challenges with remarkable resilience, driven by the audacity to build impactful ventures,” Kola added.
Women Entrepreneurs: A Snapshot
The report highlights the steady rise of women in India’s startup ecosystem, with more women entering entrepreneurial roles, including in Tier 2+ cities. Yet, stark disparities remain. Between January 2022 and October 2024, only 16% of all capital raised was allocated to startups with women co-founders. Even more concerning, just 8% of startups are led by female CEOs, while 92% are led by their male counterparts. Additionally, although 19 startups with women co-founders have reached unicorn status, only three of these have women CEOs at the helm, pointing to the significant gender gap in leadership and capital access across India’s entrepreneurial landscape.
Funding and Bias: The Numbers Speak
The funding disparity remains one of the most pressing challenges for women-led startups. The report finds that startups co-founded by women consistently received smaller cheque sizes—approximately half the average received by male-led ventures. For instance, the average cheque for women co-founded startups ranged between $2.8 million and $4 million from 2022 to 2024, while male co-founded startups secured $5.1 million to $8.6 million. Moreover, startups led by female CEOs received only ₹4 out of every ₹100 invested in startups. Such inequities perpetuate a cycle where women founders face greater scrutiny during pitch evaluations and often lack access to the robust investor networks predominantly enjoyed by their male counterparts.
Tier 2+ Cities: Rising Stars
Encouragingly, the report points to a notable increase in women-led startups emerging from Tier 2+ cities. Female-led startups in these regions saw a funding growth rate of 1.41x, compared to 1.07x for male-led startups, driven by evolving societal norms and focused government initiatives. However, funding for female-led ventures in these regions still lagged significantly behind their male counterparts, raising $0.3 billion compared to $1.3 billion.
Gender Bias in Investment Practices
The report also examines biases within the investment ecosystem. While 80% of investors acknowledge that gender plays a role in evaluating startups, only half are committed to improving gender diversity in their deal flow. Alarmingly, 75% of investors evaluated only 1–3 female-led startups per quarter, compared to more than 50 male-led startups.
The lack of women in decision-making roles further exacerbates this issue. Fewer than 6% of investment firms in India have female general partners, and only 30% of founders who successfully raised capital had the opportunity to pitch to a female investor.
Challenges Beyond Capital
Beyond financial barriers, the report highlights internal and societal challenges faced by women entrepreneurs. Approximately 22% of women founders reported family pressures affecting their performance, and 30% experienced frequent self-doubt in the workplace. Women leaders are also twice as likely as men to alter their leadership style to fit into male-dominated sectors, a move that can undermine their authenticity and confidence.
The talent pipeline also reflects a gender disparity: 70% of women founders struggle to attract and retain talent, while 40% report a lack of female role models, particularly in tech and engineering fields.
Pathways to Empowerment
The report outlines actionable steps to level the playing field for female entrepreneurs. Key recommendations include encouraging women to pursue STEM education, increasing the number of female investors, amplifying visibility for female founders through media and events, and fostering inclusive mentorship programs and networks.
“Your unique perspective is your greatest strength,” writes Neha Bagaria, Founder & CEO of Herkey, in the report. “Speak up, build a strong support network, stay resilient, and believe in your power to achieve anything.”
Despite the hurdles, the CXXO report concludes with optimism. It celebrates the growing number of women founders who are breaking barriers, particularly from Tier 2+ cities, and emphasises the role of organizations like CXXO in driving systemic change. It points out that India now has 19 unicorns Co-founded by Women. “The number of startups led by Female CEOs is also increasing. This is creating a ripple effect, motivating aspiring Female Founders,” said the report.
Fewer women are facing societal barriers, making it less challenging to pursue entrepreneurship. Female Founders are also becoming more confident, enhancing the growth of Female-led ventures, the report added.
“Bias is something every Female Founder faces, but I’ve learned that the best way to overcome it is to focus on what you can control—your work, your results, and your network. Surround yourself with people who believe in you, stay true to your vision, and let your outcomes speak louder than any preconceived notions. It’s not easy, but every step forward makes it a little easier for the next generation,” said Priyanka Gill, Venture Partner, Kalaari Capital.
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