The lack of serious consideration towards women’s health initiatives among investors was one of the most significant challenges faced by Gynoveda co-founder Rachana Gupta at the time of fundraising. But despite nearly 70 rejections during the seed round phase, Gupta remained resilient and kept telling her story with unwavering conviction.
“Even with the growth and scale we’ve achieved in the past couple of years, I still had to continuously prove our potential for further scaling and sustaining the momentum. Traction was another key aspect of fundraising. It was essential to demonstrate tangible progress and growth to attract investors,” she said in an interview for DealStreetAsia’s latest report titled Female Founders in India 2023.
According to Gupta, the gender gap in venture funding, particularly in the Indian context where 90% of investors are male, can be attributed to various factors. Firstly, biases may exist in evaluating business ideas and models, impacting funding decisions. Secondly, stereotypes may influence perceptions of what constitutes an “excellent” idea or “great” founders, potentially disadvantageous to female entrepreneurs.
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What led you to become an entrepreneur? How would you describe your entrepreneurship journey so far?
My journey into entrepreneurship stems from a deep-seated desire to address one of the most significant challenges women face during their menstrual and reproductive cycles. Leaving my job was a conscious choice to dedicate myself to this cause. To foster open discussions about these issues, I initiated the Circle of Sisterhood on Facebook—a platform where women could share their concerns without judgement.
In 2019, my husband Vishal and I started a pioneering digital tool aimed at diagnosing and treating reproductive and menstrual problems. We wanted to blend technology with ancient medicinal knowledge to reach women across diverse economic backgrounds, including those with limited access to healthcare.
Gynoveda, powered by artificial intelligence, offers a novel online test that assesses gynaecological health. By providing personalised herbal remedies, ranging from $16-24, Gynoveda has become a bridge to women’s healthcare, especially for those reluctant to seek clinic-based solutions due to cultural taboos.
My entrepreneurial journey is defined by the mission to make women’s healthcare more accessible. In India, where 51% of women with reproductive problems lack treatment or advice, Gynoveda strives to mitigate their suffering and prevent complications like infertility. The convergence of technology and traditional medicine has allowed us to empower women globally, making a tangible impact on their well-being.
What are some of the biggest challenges you’ve faced as a female founder? What challenges did you encounter while fundraising? How did you overcome them?
For me as a female founder, my biggest struggles were fighting my own demons, personal doubts, and fears rather than the external world which can be very overwhelming. However, I’ve learned to recognise my strengths and take full ownership of leading the way. Balancing empathy with data-driven decision-making has been crucial for navigating challenges effectively.
One significant challenge I encountered while fundraising was the lack of serious consideration for women’s health initiatives among investors. Even with the growth and scale we’ve achieved in the past couple of years, I still had to continuously prove our potential for further scaling and sustaining the momentum. Traction was another key aspect of fundraising. It was essential to demonstrate tangible progress and growth to attract investors. Despite facing around 70 rejections during the seed round phase, I remained resilient and kept telling our story with unwavering conviction.
The mantra “Just Do It – And No Plan B” became my guiding principle. I refused to let rejections crush my optimism or deter me from pursuing our goals. Instead, I embraced each setback as an opportunity to refine our approach and move forward with even greater determination.
Has the bias towards female founders improved in recent years? Have you seen a mindset change?
Certainly, there’s been a discernible positive shift in the attitude towards female founders in recent years. As a founder in the Indian femtech landscape, I’ve witnessed this transformation firsthand. Notably, there’s a surge in funding allocated to women-led companies, in a growing acknowledgement of the valuable contributions made by such ventures. The emergence of specific funds dedicated to supporting women-led companies or those addressing women-centric issues underscores a strategic effort to promote gender diversity in entrepreneurship.
Tracxn’s report indicates that women-funded startups now comprise 18% of all funded companies in India, and the number is only set to see an upward trend. The number of active investors funding women-led startups has seen a steady rise, with an impressive 42% year-on-year increase in 2021 amounting to almost $4.9 billion in capital.
However, despite these encouraging trends, there remains significant ground to cover. In India, women constitute just 14% of entrepreneurs, overseeing 20% of MSMEs among 58.5 million enterprises, highlighting the need for continued efforts to bridge the gender gap in entrepreneurship. Equally significant is the diminishing emphasis on gender when evaluating entrepreneurial endeavours, highlighting a move towards a more merit-based approach.
While challenges persist, these developments signal a promising trajectory towards a more inclusive and supportive environment for female founders, fostering diversity and innovation in the startup ecosystem.
Do you think having male co-founders made a difference in your fundraising journey?
Certainly, having a male co-founder, specifically my spouse Vishal, positively impacted our fundraising journey at Gynoveda.com. Raising funds is inherently challenging, and Vishal’s prior experience in pitching and understanding the investor mindset proved invaluable. We certainly didn’t raise funds easily, but his background helped bring structure to our approach, enhancing our preparation. Vishal’s insights facilitated a seamless journey, enabling us to navigate challenges more effectively. Collaborating with a male co-founder, particularly one with his experience, contributed a valuable perspective, shaping a strategic and well-prepared fundraising strategy for Gynoveda.
Do you think that investors tend to have different expectations or standards for female founders versus male founders? Can you share any specific questions that are typically asked of female founders?
While I haven’t personally encountered gender-specific expectations, stories of other female founders suggest investors may inquire about marriage, children, and multitasking. Notably, questions on the husband-wife dynamic arise. In some instances, gender pay disparity is scrutinised, a concern rarely raised for men. Surprisingly, I’ve been asked more about age-related matters rather than traditional gender-related queries. While these instances highlight gender biases, my experience underscores the importance of challenging such stereotypes. As a founder of Gynoveda.com, I remain focused on merit and the mission, steering conversations towards the business’s potential and impact, rather than conforming to outdated expectations based on gender or age.
What are some of the potential reasons for the gender gap in venture funding, and how do you think these can be addressed?
The gender gap in venture funding, particularly in the Indian context where 90% of investors are male, can be attributed to various factors. Firstly, biases may exist in evaluating business ideas and models, impacting funding decisions. Secondly, stereotypes may influence perceptions of what constitutes an “excellent” idea or “great” founders, potentially disadvantageous to female entrepreneurs.
To address this gap, fostering awareness of unconscious biases is crucial. Encouraging diversity within investment firms can bring different perspectives to the decision-making process. Moreover, highlighting successful female-led ventures can challenge stereotypes, showcasing the impact of gender diversity on business success.
Emphasising the key criteria for funding, such as solid execution and business continuity beyond milestones, can redirect focus from gender to business fundamentals. Additionally, promoting a culture that values multitasking skills, both in business and family life, acknowledges and supports the unique challenges faced by female entrepreneurs. Ultimately, creating an inclusive and equitable ecosystem requires a concerted effort from investors, industry leaders, and policymakers to level the playing field for all entrepreneurs.
In the current environment, when funding will be more difficult to secure for most startups, could female founders find it tougher to raise capital?
Despite the challenging funding landscape for startups, there is a promising trend for female founders. Over the past decade, women-led startups have experienced significant growth, with total funding reaching $1.1 billion in 2023, up from $0.456 billion in 2014, as reported by Tracxn. This upward trajectory indicates a positive shift in investor interest and confidence in female-led ventures.
While securing funding remains a complex task for startups in the current environment, the increasing support for women entrepreneurs suggests a potential avenue for success. Positive business impacts and heightened investor interest create a hopeful outlook for female founders, indicating that despite the seemingly uncertain funding scenario on the surface, there are encouraging prospects for continued growth and investment. As the entrepreneurial landscape evolves, acknowledging and building upon these positive trends can contribute to reshaping the funding landscape for startups led by women.
How deeply has the funding winter affected your company’s fundraising and expansion plans?
Navigating the funding winter, Gynoveda boldly pursued Series A funding, highlighting its solution to a substantial problem within a large category. There were four key fundamentals that created trust and belief in Gynoveda for our investors:
– Large category in which Gynoveda was solving a real problem
– Evidence-based outcomes from product efficacy
– Profit over unrealistic revenue multiples
– A clear vision and road map for growth
Looking ahead, Gynoveda’s robust fundamentals position it favourably for future challenges, ensuring continued support in the dynamic investment landscape. The emphasis on addressing genuine problems, delivering measurable outcomes, and maintaining profitability aligns with the evolving priorities of investors, solidifying Gynoveda’s foundation for sustained growth.
What is the fundraising outlook for 2024?
With a focus on profitability, Gynoveda has no immediate fundraising outlook for 2024. The company has successfully transitioned from an online to an omnichannel approach and aims to establish 300 fertility clinics in the next five years. Gynoveda’s current cash reserves and profitability are sufficient to facilitate all planned expansions, providing financial stability for the envisioned growth trajectory. We believe in maintaining transparent communication with our stakeholders and will provide updates if there are developments that impact our fundraising plans.
What advice would you give to other female entrepreneurs?
Tenacity
T – Tenacity: Embrace challenges, persist through setbacks, and stay resilient in pursuing your goals.
E – Empower: Foster empowerment within yourself and your team, creating a supportive and collaborative environment.
N – Navigate: Skillfully navigate through uncertainties, adapt to changes, and seize opportunities.
A – Authenticity: Be true to yourself, express your unique perspective, and let authenticity guide your decisions.
C – Courage: Boldly step out of your comfort zone, take calculated risks, and face challenges with courage.
I – Innovation: Constantly seek innovative solutions, embrace creativity, and stay ahead in a dynamic business landscape.
T – Time Management: Efficiently allocate time, prioritise tasks, and strike a balance between work and personal life.
Y – Yield: Learn from experiences, adjust strategies, and adapt to feedback to continuously improve and yield positive outcomes.
With the experience I’ve gained over the years, my advice to fellow female entrepreneurs is simple: persevere and never lose hope. The entrepreneurial journey is a roller-coaster of ups and downs, presenting various challenges. It’s crucial to navigate through these obstacles with resilience and determination. Understand that each hurdle is an opportunity for growth and learning. Embrace the setbacks, learn from them, and let them propel you toward the ultimate dream you envisioned for your business. The journey may be demanding, but the rewards are worth the effort. Surround yourself with a supportive network, seek mentorship, and stay true to your passion and vision. Remember, your resilience and perseverance are the keys to overcoming challenges and achieving long-term success. Keep going, believe in yourself, and you’ll realise the potential you have to make a significant impact in the entrepreneurial landscape.
In your opinion, what are some of the most important factors that investors should consider when evaluating a startup, regardless of the founder’s gender?
I look at what we call the 5Rs of business to evaluate a startup
ROAS, RTO, Repeat, Revenue, Reviews
1. ROAS (Return on Ad Spend): Measure of advertising effectiveness, indicating
revenue generated for each rupee spent on ads.
2. Returns: Do your consumers change their minds after making a purchase?
3. Repeat Rate: Percentage of customers who make multiple purchases, gauging loyalty and long-term business sustainability.
4. Revenue: Total income generated from sales or services, a fundamental metric for assessing business financial performance.
5. Reviews: Customer feedback and opinions that influence brand reputation, customer trust, and future purchasing decisions.
