The Indian startup ecosystem is marking an important historical milestone for the country. The gap between the sexes is one of the issues that calls for attention. The existing data on women's engagement in the startup ecosystem in India paints a dismal picture, which is why the ecosystem needs to include more female entrepreneurs and investors.
The percentage of Indian unicorns that were founded by female entrepreneurs is only 15 per cent, and the amount of funding that has been raised by start-ups that were founded solely by women is also extremely low.
According to the findings of a number of different studies, having a greater number of female founders of businesses has the potential to not only increase the proportion of working women but also contribute significantly more to the economies of both the nation and the world. So, what is it that prevents women from launching their own businesses?
The entire cultural architecture, acts as an obstacle in the growth of women. A girl kid is taught to have certain constraints placed on her beginning in early life. When women get older, they are eventually expected to find work that is compatible with their roles as mothers and wives. On the other hand, being an entrepreneur requires dedication round-the-clock. The reason there are so few female entrepreneurs is partly due to the fact that women are raised according to traditional gender norms.
There are some Indian unicorns with at least one female founder such as Nykaa, Mamaearth, Hasura, The Good Glamm Group, Pristyn Care, OfBusiness, Lead School, Mobikwik, Acko Insurance, BYJU'S, Rivigo, Zenoti, and Livspace.
According to the most recent report, out of 15 unicorns with female founders, the e-commerce industry accounts for the highest share (43 per cent) of women's representation in the founder's club. In comparison to other major startup centres, like Bengaluru and Mumbai, Delhi-NCR has seven unicorns that were founded by women, while Bengaluru only has five and Mumbai only has three.
FalguniNayar, the creator of Nykaa and India's most successful self-made woman entrepreneur, is India's wealthiest self-made woman entrepreneur. She is the first woman in India to lead the process of a start-up company going public. Her achievements have also provided the inspiring female founders in this country with a role model to look up to.
Citing some examples, let us know how women set up their business and were quite successful in their attempts.
First, let us know about the common beauty platform, Nykaa.The inconsistencies that were seen in the market for beauty goods served FalguniNayar, the creator of the company, as the initial motivation that led to the establishment of the business. Even though there was a significant gap between supply and demand in the market, the market for beauty and cosmetic items in India was not at par with the scale of the industry in other countries, such as France and Japan. In addition, it was determined that the products were not available in many locations around the country, which was another factor that contributed to the establishment of Nykaa.
In the year 2012, FalguniNayar established the fashion brand Nykaa. When Nayar first started Nykaa, she had little knowledge of beauty products, the retail industry, and technology. She also had only three employees. The year 2012 marked the beginning of operations for the business, which has seen an initial surge of approximately sixty orders since its inception. On the other hand, Nykaa did not make any adjustments to their price proposition. It is true that it had the ability to reduce the prices in order to increase sales, but it chose not to do so. It all began as an internet business, but over time it shifted its focus to become an Omni channel strategy.
Nykaa is a well-known company that has its headquarters in Mumbai. The company is well-known for the extensive variety of fashion and intimate wear items, as well as beauty and cosmetics products that it makes available to customers through its website, app, and online stores. The primary goal of the company is to transform ordinary ladies into amazing individuals in every way.
Then, comes another famous payment platform, MobiKwik. UpasanaTaku is the co-founder of MobiKwik. The company currently has a valuation of a unicorn and is planning to go public in the near future. The use of mobile wallets and digital transactions are now both a practical possibility. MobiKwik is one of the pioneer Indian mobile wallet firms, and despite the fierce rivalry in the industry, it has carved out a specific market niche for itself despite the fact that several multinational players are already providing mobile wallet services in India today.
UpasanaTaku is recognised as being one of the co-founders of the company MobiKwik. Upasana began her career at HSBC, where she worked as a Business Analyst. She later moved on to Paypal, where she held the position of Senior Product Manager, and she is now serving as the co-founder, Chief Operating Officer, and co-founder of MobiKwik and Zaakpay, respectively. Before Taku was able to make her ambitions of being an entrepreneur a reality, she worked as a consultant for a number of different companies.
MobiKwik was founded in 2009 with a desire to try something fresh. The co-founder envisioned a streamlined payment system that would allow users of prepaid mobile devices to top off their balances with ease. Because recharging a phone is a relatively low-value transaction, he developed a digital wallet in which customers could store their funds and then recharge their phones whenever they choose. The business was started out of own money in a rented office space in Dwarka, Delhi.
These start-ups are successful and it is seen that women have taken the lead. More women must be encouraged to start their own business. Raising funds is an issue but once you decide to start a venture all by yourself or co-found a business, then nothing is impossible. Starting an entreprise will bridge the gap and also the existing issue of unemployment can be made better because raising a business means growth of employment opportunities.
It would appear that the scenario is shifting, but at a more gradual rate. Over the course of the last decade, there has been an increase in the number of women entering the field of entrepreneurship. The scenario is shifting, but slowly. Seventy-nine per cent of female-founded Indian unicorns were founded after 2011, according to some reports. It shows a rise in women entrepreneurs over the last decade. Eleven of 15 new businesses with a female founder had a billion-dollar valuation by 2020.
Several studies have found that women in business leadership roles and women's entrepreneurship can boost an already strong economy. India's government has also implemented programmes to encourage and support female entrepreneurs such as the Pradhan Mantri Mudra Yojana, the Women Entrepreneurship Platform (by Niti Aayog), the MahilaUdyam Nidhi Scheme, and the Stree Shakti Scheme. It is the responsibility of investors and founders to bring more women onboard or into senior roles to reap the benefits of a diverse team.
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