Breaking barriers: Paving the way for more women in startups

As increasing the representation of women in the workforce becomes a bigger priority — from tech firms to manufacturing shop floors — India’s startup ecosystem is setting new benchmarks.

Startups in the country are doing better at gender inclusivity than the corporate sector, reports Business Standard , citing the WISER report by ACT for Women and Udaiti Foundation in collaboration with McKinsey and LEAD and Krea University. In 2022, women made up 35% of the 860,000 people employed in startups, compared to 19% in corporates, states the report. Across all organisational levels — from entry to manager, and from director/vice president to founder/CEO — startups outperformed corporates when it comes to representation of women.

While the number of women hired at entry level is almost at par for both sectors, the gap widens as women move up the career ladder. The contrast is most prominent at the founder/ CEO level, and experienced women switch from conventional companies to join startups to advance their careers. Women-led startups perform better on gender equality, shows the data , indicating a relationship between women at the helm and women’s career progression in startups.

Placing women in leadership roles is pivotal, says Swarnali Singha , co-founder and Chief Business Officer at ZERON , sharing that it not only challenges biases, but also cultivates a balanced and inclusive culture.??

Startups in India are uniquely positioned to attract women professionals and have the potential to create two million new jobs for women by 2030. Why? They offer opportunities for faster career progression and higher autonomy, enabling women to reach their career goals across stages, according to the WISER study. Singha’s advice to women working in the ecosystem? “Embrace your uniqueness, speak your mind, challenge the status quo, and never shy away from taking up challenges that push you beyond your comfort zone.”

Mission: More women-led startups in India

“By no means is India an easy market for women to startup,” said Shaili Chopra , founder of Gytree.com and SheThePeople.TV , in an interview earlier this year. However, over the years things have changed as more female founders win and grow, she adds.

As of 2022, almost 18% of startup founders and CEOs were women, and 20 women-led startups in India are in the pipeline to become unicorns . Bengaluru leads the way when it comes to women-led startups at 1,783, followed by Mumbai and Delhi, according to Tracxn data. Despite this progress, challenges for women founders remain.?

Challenges include the lack of funds backing women to scale and grow, access to a support system of advisors and mentors, and an ecosystem that fuels the ability of a woman to go to work without guilt, according to Chopra.?

The lack of access to capital is a major barrier to entry for women entrepreneurs, said Neha Patil , Managing Partner at ProGen Ventures , in an interview with LinkedIn. She adds that women leaders still get questioned about their ability to fully commit to their entrepreneurial endeavours,? balance family responsibilities and raise funding. The disparity in ticket size resulted in women founders facing an investment loss of about $3.7 billion over the last three years, shows a report.

One of the largest miss today is providing business finance education specifically for small business owners and having an accessible pool of mentors for guiding small/micro business owners across industries, said Neha Singh , Founder at Womoneysta , in an interview with LinkedIn.

Only 25% of women entrepreneurs surveyed in a recent study have access to entrepreneurial mentorship , and 64% are not aware of any mentorship programmes for entrepreneurs, shows a report by Women Entrepreneurship Platform (WEP) and Microsave Consulting. “Entrepreneurship is a very long, lonely and high risk journey, and the startup ecosystem could do more to be inclusive towards women founders in terms of building networks of learning, mentorship, and access to growth enablers,” said Apurva Chamaria , Senior VC and startup leader, in an interview with LinkedIn earlier this year.

?? How can the startup ecosystem work on bridging the gender gap? Share your take with #TechWrapIndia.

Investors have a role to play, too

“To work towards a more equitable ecosystem, it is important for both investors and operators to work together,” says Pearl Agarwal , founder and Managing Director at Eximius Ventures . Investors, she adds, have to ensure they are objective without falling prey to biases — which will encourage female founders to be more confident while raising funds.?

“Operators need to curb any signs of hostility and discrimination as soon as they emerge.”

Ensuring more equity will promote more women in senior positions will lead to a great influx of prospective female founders, she says.?

?? See Pearl’s post on what can be done to create an equitable startup ecosystem

From women in startups to startups for women

Health tech startups catering to women’s healthcare are among those likely to be in focus for investors next year. Femtech — a segment expected to be a $60 billion industry in the next four years — has startups like Niramai, Gynoveda, Allara, and Inito operating in the space in India.?

“In a country where women’s health has historically been overlooked, fem tech startups lead as catalysts for change with innovative solutions,” says Rohini Nair , Partner at ANB Legal .?

She adds that the fem tech market is gaining a defined value in the consumer market, drawing active interest from investors, payers, and healthcare providers — which is a big stride toward equalising “fem” and “tech”.?

?? What women-centric startup segments do you think investors should focus on in India? Share your take with #TechWrapIndia.

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Reported by: Isha Chitnis

Community Manager: Raunak Ramteke