According to the recent study by Kalaari Capital "CXXO State of Female Entrepreneurship in India, "sheds light on the changing face of female entrepreneurship in India. The report explores challenges encountered by women founders and emphasizes the deep-rooted systemic barriers in this space. The report says 70% of women founders find difficulty in attracting and retaining talent, while 40% cite a lack of female role models, especially in tech and engineering.
The report highlights a stark funding gap for women-led start-ups. 16% of the total capital raised went to start-ups with female co-founders between January 2022 and October 2024. Women who co-founded start-ups also consistently received smaller seed cheques—nearly half of what their male-led counterparts received on average. This inequality creates a vicious cycle where women founders are scrutinized more during pitches, and often lack access to strong investor networks mostly enjoyed by their male counterparts.
Gender biases in the investment ecosystem are also mentioned in the report. While 80% of investors admit gender factors in start-up evaluation, only half are willing to improve gender diversity in their deal flow. 75% of investors assessed only one to three female-led start-ups per quarter, as opposed to over 50 male-led ones was surprising. This absence of women in decision-making roles only worsens the issue with less than 6% of investment firms in India having female general partners.
The CXXO report also highlights societal challenges faced by women entrepreneurs beyond financial barriers. 22% of women founders reported family pressures affecting their performance, and 30% faced frequent self-doubt at the workplace. Female leaders are also twice as likely as men to change their leadership style to fit into male-dominated sectors—a step that can undermine their authenticity and confidence.
The CXXO report recognizes the challenges faced by women in entrepreneurship but concludes with a hopeful note. It celebrates the increasing number of women founders breaking barriers, especially those from Tier 2+ cities. Additionally, the report highlights the role of initiatives like CXXO in driving systemic change
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