Women-led tech start-ups in India are second after the United States in all-time funding, a new report has revealed. These ventures have raised a mammoth $26 billion in capital, PTI reported. The highest amount raised was $6.3 billion in 2021.

More than 7,000 startups led by women account for 7.5% of the total active startups in the country, according to Tracxn, a startup research and analytics firm.

India’s IT hub Bengaluru takes the top position when it comes to the number of women-led startups as well as the total funds raised to date, Tracxn reported. Bengaluru is followed by Mumbai and Delhi-NCR.

In the past few years, women-led unicorns in India have gone through several highs and lows. With eight new unicorns, it saw a big surge in 2021, followed by five in 2022. This came after a steady growth in 2019 with three unicorns. In 2020, the country had four. But there were no new unicorns in 2017, 2023, and 2024, indicating fluctuating momentum, the report highlighted, adding that “despite these setbacks, women entrepreneurs continue to drive innovation”.

To foster a more consistent rise in women-led unicorns in the country, strong financial backup, ecosystem support and mentorship are crucial, it stated.

In 2021, women-led startups marked the highest number of acquisitions, having 45 buyouts. The number, however, came down to 36 in 2022 and 25 in 2023.

Last year, the number of acquisitions of women-led startups stood at 16.

A total of five startups, led by women, went public in 2024, including MobiKwik, Tunwal, LawSikho, Usha Financial and Interiors and More. So far, this year has not seen any IPOs.

Besides securing massive funding, these startups are “redefining industries, generating employment, and setting new benchmarks for future entrepreneurs,” Tracxn said.

Although the startup ecosystem still is far from bridging the gender funding gap, the trailblazers have proven that women-led startups are driving India’s growth story, it added.

At 15.18%, 2022 witnessed the highest funding contribution from the India-based startups on the global scale. During that year, women-led startups in India raised $5 billion, in comparison with $32.8 billion worldwide.

Last year, India stood third in terms of funding raised by startups, which are co-led by women and accounted for 3.96% of the total funds raised by women-led startups worldwide. The US and the UK led the list.