India has become more and more of a startup hotbed in recent years. Numerous entrepreneurs have launched their firms because of PM Modi's "Make in India" strategy. Now that you know what a startup is, you may be asking what it is. Some of you may already be familiar with the term. A startup is a brand-new business that can be established by one or more individuals with creative ideas to cater to the needs of the younger generation with the newest technological goods and services. It needs capital from other investors during the beginning of its operation, such as their family, friends, or other businesses. Startups come in many forms, including those in wealth management, fintech, biotech, construction, and a few other industries.
In research by WalkWater Talent Advisors, the low percentage of women among Chief Financial Officers (CFOs) in Indian and US-based unicorns was emphasized. In Indian unicorns, only 4% of CFOs are female, as opposed to 17% in the US. Numerous causes, such as historical biases, cultural norms, and structural impediments that impede women's job advancement, might be blamed for this disparity. Women make up 15% of the IT staff at In-Mobi, whereas 20% of the crew at Paytm is made up of women. Requests to Mu Sigma and Ola were unanswered, while those to Flipkart, Freshdesk, Practo, Quikr, and Snapdeal were refused.
For an environment to be more inclusive and diverse, gender equality initiatives and efforts to overcome gender inequalities in the workplace are crucial. The development of women into leadership positions can be supported by organizations and society at large working to create equitable opportunities, eradicate prejudices, and put in place policies that promote these goals.
The case for increased gender diversity's beneficial effects on business performance and economic growth has been developing over the past few years. However, a study by WalkWater Talent Advisors discovered that neither Indian-based unicorns neither those with US headquarters have enough female Chief Financial Officers (CFOs). "In the last 5-6 years, efforts have been made to improve gender diversity in product development and product management. Various hackathons are organized for women, branding is done to hire female engineers and developers. Such a move will help create a stronger pipeline for women. in key roles", Harold D'Souza, Founder and Director of WalkWater Talent suggested this information.
More than 15 Indian unicorns have appointed CFOs in the last year, and more than a dozen CFOs have quit. According to Walkwater study, these unicorn companies are worth a combined $350 billion. In India, the number of unicorn businesses has considerably expanded in recent years. A number of these businesses have already made their initial public offerings (IPOs), and many more have IPO plans. But since the COVID-19 outbreak, the great majority of unicorn firms have stopped raising money. In Q1 2023, investments in Indian start-ups decreased by 75%. It is noteworthy that no unicorn has attained that status in the previous eight months even though more than 20 unicorns were born in the first nine months of 2022.
Only 33% of unicorn CFOs received offers from other startups, based on the WalkWater survey, showing greater reliance on expertise from traditional sectors. Of the remaining 67% of the non-startup staff, the top 3 sources are BFSI (18%), Industrial (16%), and FMCG (14%) accordingly. In contrast, 72% of Unicorn CFOs in the US were hired from other start-ups, with Enterprise SaaS (58%) and Fintech (16%) ranking as the top sources of talent.
Indian CFOs are younger than American CFOs, based on a WalkWater research of 100 Indian unicorns and 50 US unicorns. In India, 60% of the talent pool has between 15 and 25 years of knowledge. On the other hand, in the US, 60% of the talent pool has between 20 and 30 years of experience.
While there has been considerable progress in India towards addressing the need for more female entrepreneurs, there are still glaringly few women in tech jobs at domestic businesses. No precise goals have yet been established. The results were as expected skewed when sources contacted India's top 10 most valuable businesses for information on the percentage of women working in their tech and non tech departments. The top cities in India for hiring CFOs are Delhi-NCR and Bengaluru. According to the survey, nine CFOs are based in the US, while one is in Singapore. 50% of these 10 CFOs are citizens of the US. In NCR, 32% are CFOs, 16% are in Mumbai, and 35% are in Bengaluru. The strategic job of a CFO includes fundraising, merger & acquisition, investor relations, and board interactions, according to D'Souza and Gibin Varghese of WalkWater Talent Advisors. Controllership and commercial alliance would be the tactical function. Depending on the stage a firm is at, the CFO's role's importance changes. The Chief Financial Officer's position in a unicorn changed significantly in terms of financing.
Talent, not gender or any other factor, is what entrepreneurs need most, according to Shachi Irde, executive director of Catalyst India, a group that supports giving women in business wider positions. According to her, a more crucial talent program for startups is a smaller subset of the diversity agenda. Startups "don't lose any sleep over their gender diversity ratio, though. According to Geeta Kannan, managing director for India at the Anita Borg Institute, a non-profit organization that promotes the need for more women in the tech sector, it is not their top concern. But they ought to since it's essential to their company.
The Indian startup ecosystem has seen an astonishing rise in unicorns, demonstrating the tenacity of many business owners. It's interesting to see that despite their importance, 30% of unicorns still rely on VPs of Finance rather than utilizing CFOs to the most extent possible.