You are currently viewing 33% of debt investments made to women led enterprises, impact businesses: Caspian Debt

33% of debt investments made to women led enterprises, impact businesses: Caspian Debt

Startup firm Caspian Debt has funded over 225 social enterprises, startups, and financial institutions across sectors, out of which, 33% of loans disbursed during FY22 were to women-led companies.

This is in wide contrast to the larger industry figures where only 2% 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, Caspian Debt said in a statement.

The organisational processes which include sourcing, due diligence, credit committee approval and disbursements are aligned to achieve the objective of reaching more women entrepreneurs, it said.

Caspian Debt, is one such organisation that helps enable the growth of enterprises that work towards creating social or environmental impact, in a responsible, transparent, and sustainable manner. The company works in sectors and with companies where debt capital is scarce and much needed.

Research says that women dare to dream big despite a lack of opportunities and resources. They have been marking their identity, across domains and industries, confidently taking on leadership roles in all sectors of the economy, along with the society witnessing a steady rise in women entrepreneurs in India, it said.

A conducive ecosystem for budding and existing women entrepreneurs gives them the boost and adds to the economy, it said, adding that a recent report by NASSCOM says, 18% of startups in India are led by at least one woman founder or co-founder.

The report also highlights that between 2019 and 2022, 17% of investment deals in India were raised by startups with women leaders, indicating the rise of women leaders in India’s startup ecosystem.

Caspian Debt MD and CEO Avishek Gupta said “Women entrepreneurs we have worked with are innovative and versatile, and have been seen to successfully lead impact driven initiatives. We have a higher acceptance rate and retention rate for women led organisations.

“43% of the companies funded by Caspian Debt since inception are either women led or deliver a product or service that benefit women or employ majority women,” he said.

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% of female only founded companies and 26.2% companies with female co-founders received any funding,” it said.

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