RBIH White Paper Reveals That a Mere 3% of Women in Small Cities have the Opportunity to Obtain External Funding

4th May 2024 : A recent white paper presented by the Reserve Bank Innovation Hub (RBIH) revealed that merely 3% of women entrepreneurs in tier 2 and 3 cities in India, out of a sample of 300, had access to external funding for business initiation or expansion. In light of this, Rajesh Bansal, CEO of RBIH, expressed concern over the reluctance of angel investors to support women in fintech ventures with amounts ranging from US$50,000 to US$100,000. To address this gap, RBIH is collaborating with institutions like IIM Ahmedabad, IIM Lucknow, BITS Pilani, and the Indian School of Business to establish a fintech entrepreneurs program.

Bansal highlighted the discrepancy in financial goals between genders, particularly in rural areas, emphasizing the need for financial institutions to consider gender-specific intentions. He suggested that by tailoring financial products to meet the diverse needs of women, institutions can facilitate their empowerment and goal achievement.

Following the white paper launch, panel discussions focused on capital and data gaps, as well as challenges encountered by women entrepreneurs in business development and scaling. Bindu Ananth, co-founder of Dvara Holdings, emphasized the importance of seizing opportunities to bridge the gender gap swiftly. An example she provided was leveraging initiatives like land title digitization to advocate for broader land reforms.

The panel also featured insights from Anuradha Ramachandran, managing partner at TVS Capital Funds, and Geetha Manjunath, founder and CEO of NIRAMAI Health Analytix. Deepa Muthukumarasamy, founder of First Spoon, shared her journey of overcoming challenges as a woman entrepreneur from a small town, highlighting the difficulties in securing familial and financial support. Paroma Chatterjee, CEO of Revolut India, discussed gender dynamics in financial product development, citing her experience of promoting women entrepreneurship during her tenure at Flipkart.

Shinjini Kumar, co-founder of mysaltapp, who conducted research for RBIH's white paper, reflected on her encounters with women entrepreneurs across India, underscoring their resilience and the need for gender-disaggregated data. Lastly, Shraddha Rj Jindal, joint managing director of Jindal Saw Limited, Mumbai, shared her perspective on the challenges faced by women inheriting businesses.