The Indian startup ecosystem has evolved dynamically over the last two decades, demonstrating a rapid growth trajectory. However, despite the rapid growth of the startup ecosystem, there are certain challenges that are still left to be addressed.
One significant challenge, which needs attention this International Women’s Day, is equitable funding for women-led enterprises and women-impact businesses. According to Traxcn database, only 2 per cent of female-only founded companies and 26.2 per cent of companies with female co-founders received any funding.
The last few years have seen an emergence of mission-driven companies, attempting to solve critical social and environmental challenges.
Over the years, Caspian Debt has funded over 225 social enterprises, startups, and financial institutions across sectors, out of which, 33 per cent of the loan amount disbursed by Caspian Debt during FY 22 was to women-led companies. This is in wide contrast to the larger industry figures where only 2 per cent of funding goes to women. One of the primary reasons behind the encouraging figures at Caspian is the team, which is very diverse and is intentional about reaching out to more women entrepreneurs. The organisational processes which include sourcing, due diligence, credit committee approval and disbursements are aligned to achieve the objective of reaching more women entrepreneurs.
Avishek Gupta, MD and CEO Caspian Debt, says, “Women entrepreneurs we have worked with are innovative and versatile and have been seen to successfully lead impact-driven initiatives. We invest in women not only because it is the right thing to do but also because it makes a business case for us."
The lack of a pipeline of women entrepreneurs is considered as one of the biggest challenges of reaching women entrepreneurs leading to poor funding outcomes. While this is true to some extent, a significant investment needs to be made to ensure that regular flow of women enterprises is sourced.
As women overcome hurdles in their homes and society and race towards their ambitions, there has never been a better time with the market gaining consciousness and making it easy for them to set up their enterprises. Multiple platforms, organisations and initiatives have come up that can help women set up, grow and lead businesses, fostering a more inclusive and innovative environment. Impact organisations led by women have an edge in addressing social and cultural barriers along with important issues that impact the society at large. Appropriate Funding type and support for organisations led by women is an important step towards encouraging women entrepreneurs, empowering women in leadership roles and achieving gender equality not only at local levels, but world over.