India's Women-Led Startup Surge

Empowering Women Entrepreneurs to Bridge India's Startup Ecosystem Gender Gap

Vandana Agarwala

Mar 18, 2024
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India's Women-Led Startup Surge


India's startup ecosystem is experiencing phenomenal growth, blossoming into the third largest globally and second in innovation. From a mere 450 recognized startups in 2016, it now boasts a staggering 115,000 in 2024. However, amidst this remarkable progress, a persistent challenge lurks – the gender gap.


Despite the rapid growth, India continues to grapple with entrenched social structures. The disparity results in low investor confidence in women-led businesses. The type of questioning further emphasizes this bias. Potential investors tend to ask women more "prevention" questions, focusing on safety, potential risks, and limitations, whereas men are mostly asked "promotion" questions. This phenomenon, present globally, creates a significant hurdle for women seeking capital.


Vineeta Singh, CEO of Sugar Cosmetics and an investor on Shark Tank India, exemplifies these struggles. Despite her impressive credentials, she has recounted instances where investors refused to meet due to her gender and expressed apprehension about her pregnancy. 


However, things are changing fast. Though only 14% of entrepreneurs were women in 2018, recent years have witnessed a heartening rise, with the number reaching 20%. This article delves into this positive trend, exploring how India's startup ecosystem is fostering a thriving environment for women to thrive, despite challenges.


Indian women have tremendous potential. Out of the total STEM graduates in India, 43% are women. India's growing number of women entrepreneurs is significantly impacting businesses and the economy. These women-led companies are achieving higher ROI and also fostering a more inclusive work environment.


What has changed?


Recognizing women's vital role in economic development, the Indian government has launched several initiatives to empower and support their ventures. This includes an inclusive policy framework with initiatives like Startup India and platforms providing information, resources, and connections for women entrepreneurs like the Women's Entrepreneurship Platform.


Some individual initiatives have made significant strides in supporting women entrepreneurs. One notable example is STEP, an incubator/accelerator designed for women-led startups by Reinu Shah, a serial entrepreneur. Recognizing that participation by women in the existing incubation programs was below 20%, Shah designed STEP in 2019 to address the unique challenges they face. "With STEP, I have tried to convert every challenge I have faced into a solution," she says.


STEP rests on 5 pillars: Empathetic community, learning, mentorship, role modeling, and networking.


  • Empathetic Community: Empathy forms the foundation of STEP. Understanding that entrepreneurship can be a lonely journey, the program conducts workshops addressing common challenges women face, such as imposter syndrome and adaptive leadership. It invests significant time in nurturing a supportive community and active listening. "STEP embodies a unique blend of power and feminine values," adds Reinu. Manvi Arora and Bhavana Issar, alumni of the program, describe STEP as a family providing guidance and a "sanctuary" for learning, growth, and rejuvenation.


  • Learning: Reinu observed that while financial need or passion often motivates women towards entrepreneurship, many lack the knowledge to move forward effectively. STEP helps bridge the knowledge gap through targeted capacity-building sessions for financial literacy, organizational culture, and pitching. Alumna Praapti Jayaswal describes STEP as an intensive crash course in entrepreneurship. Pavni Lolla, a first-generation student entrepreneur who lacked practical experience in entrepreneurship, feels an incubation program like STEP was necessary for her.


  • Mentorship: STEP has a mentor pool comprising over 50 seasoned professionals from diverse sectors, ensuring a broad spectrum of expertise. "We make efforts to pair the most fitting mentor with each mentee for an effective mentorship experience," adds Reinu.


  • Role Modeling: STEP actively invites alumni and successful entrepreneurs to share tips and lead by example in speaking to cohorts. "STEP's role models are relatable figures, just five steps ahead of the entrepreneurs. This fosters a sense of connection rather than intimidation," says Reinu. Alumna Hemlatha Rajesh says the experiences of other entrepreneurs encouraged her to be persistent in her journey.


  • Networking: “In the last 5 years, STEP has built a vibrant community of entrepreneurs, mentors, industry experts, service providers, and investors,” says Reinu. Stepper Sukanya Dixit shares that she met entrepreneurs from different sectors and collaborated with a couple of them. An example of networking facilitated by STEP is the highly successful "She Rises" boot camp, launched in partnership with FICCI. In its maiden year, this two-month program offered weekly workshops, mentorship, and peer-interaction sessions to 500 women entrepreneurs across 16 Indian cities, concluding with pitching conclaves in every city.


STEP is a Startup India Seed Fund Scheme (SISFS)-recognized incubator. When applying for SISFS through STEP, funding is exclusively available to women. The selected startups are eligible for up to Rs.20 lakhs in grants and Rs. 50 lakhs in debt financing at the lowest interest rates. In 2023, STEP provided Rs. 1 crore in funding to women-led startups. Since it is limited to women, the chances of women getting access to funding are high. The selected applicants also get the opportunity to be a part of the STEP cohort.


Through its innovative programs, STEP has successfully incubated more than 500 startups, encompassing both social sector organizations and companies, achieving an impressive survival rate of 98%. Additionally, it has hosted design thinking workshops for over 2,000 students, further broadening its influence. With an ambitious vision for the future, STEP aims to significantly impact the entrepreneurial journey of 10,000 women by 2030. Reinu Shah, the visionary behind STEP, affirms: “My vision is to change the narrative for women from beneficiaries to being the real changemakers."


The future of the Indian economy is boldly colored with the vibrant spirit of women entrepreneurs. No longer invisible, they are a force to be reckoned with, shattering stereotypes and reshaping industries. With initiatives like STEP paving the way, a powerful ecosystem fosters their growth. This is not just a promising future, it's a revolution unfolding right now, and the world is watching.


Vandana Agarwala
Vandana Agarwala
Vandana Agarwala is a content writer at STEP, a women-led startup incubator/accelerator program, actively contributing to empowering ventures. Passionate about education, she also contributes to Project Pehal, working towards enhancing learning outcomes in government schools across India. With a background in freelancing, Vandana has honed her skills in crafting compelling content. She is an alumna of Hansraj College, Delhi University.