This interview originally appeared in the DealStreetAsia DATA VANTAGE report Female Founders in India 2024.
“Gender stereotypes and perceptions about women in leadership positions influence questions and queries during an investment presentation and interactions. Women founders are often asked more questions about stability and the survival of their company, while their male counterparts are expected to provide insights on growth and business expansion,” says Sucharita Mukherjee, CEO and Co-founder of the fintech firm Kaleidofin Pvt Ltd.
Even in casual conversations, there is a much higher chance that a woman founder will be asked about family responsibilities, and work-life balance, Mukherjee added.
“While I have not experienced gender bias in India as I sought out investors with strong gender representation who truly saw the value in pushing for diversity, in the early part of my career as an investment banker, I have observed significant discrimination in the workplace, where even HR teams were apathetic to such challenges,” Mukherjee said in an interview for DealStreetAsia’s report titled Female Founders in India 2024.
Acknowledging the fact that it is definitely harder for women founders to raise capital, Mukherjee said, “Women founders like us have to work harder and be smarter and more visionary and most importantly support and look out for each other, as it is not a fair world and only our efforts will make it so.”
In September last year, Kaleidofin received an equity infusion of $13.8 million led by The Netherlands-based Rabo Partnerships. Existing investors Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India, and Flourish also participated. Following the latest infusion, Kaleidofin’s total funding rose to $37 million.
Edited excerpts from the chat with Mukherjee:
What inspired you to start your own business, and how did you identify the gap in the market?
I have been passionate about making formal financial services accessible to all. In my previous role, I had experienced the transformative and multiplier impact of ‘right finance’ on women entrepreneurs and their community. Over the years, with the penetration of digital infrastructure in India, the possibility of using technology to increase access to formal financial services to the most remote parts of the country became more evident. I wanted to make use of this opportunity and was fortunate to have a like-minded co-founder, Puneet Gupta, to start the journey of Kaleidofin.
We started Kaleidofin in 2017, with the core mission of making formal financial services available to the underserved segment. Today, Kaleidofin has impacted the lives of over 6.3 million people in India, Bangladesh and East Africa.
What were some of the biggest challenges you faced as a woman entrepreneur when starting your own business?
When Puneet Gupta and I decided to start Kaleidofin, we had over a decade of experience in the financial inclusion sector. Our existing relationships in the network and a proven track record made it much easier for me to start Kaleidofin. I had experienced the impact that access to formal financial products can make for women entrepreneurs in the nano SME sector. The vision to make a stronger impact in their lives through Kaleidofin kept me going.
How did you go about securing funds for your venture? What were the major challenges in raising capital?
Two major roadblocks that we faced in the initial years were the absence of a proven financial service model catering to the informal sector and the expectation of investors of a hockey stick business plan. Since our business was based on building trust and awareness among customers, the growth plan was attuned to the time required to build such confidence, compared to many other startups in India. Our first investors, Omidyar Network (now Prana Ventures), Blume and IIMA Ventures believed in our conviction and our ability to execute the idea. We used most of our investment to build our tech and data stack and expand our team.
“Two major roadblocks that we faced in the initial years were the absence of a proven financial service model catering to the informal sector and the expectation of investors of a hockey stick business plan.”
Do you think having male co-founders made a difference in your fundraising journey?
My co-founder Puneet Gupta and I had worked together in the financial inclusion space for over a decade before starting Kaleidofin. We leveraged our networks and our complementary skill sets, presenting ourselves as a team rather than individuals.
In the current environment, when funding is difficult to secure for most startups, will female founders find it tougher to raise capital?
It is definitely harder for women founders to raise capital given most investing teams are male-only and find comfort in investing in male founders with backgrounds and mindsets similar to themselves. Women founders like us have to work harder and be smarter and more visionary and most importantly support and look out for each other, as it is not a fair world and only our efforts will make it so.
“Women founders have to work harder and be smarter and more visionary.”
Do you think investors tend to have different expectations or standards for female founders than male founders? Can you share any specific questions that are typically asked to female founders?
Gender stereotypes and perceptions about women as leaders influence the questions and queries during an investment presentation and interactions. Women founders are often asked more questions about stability and the survival of their company, while their male counterparts are expected to provide insights on growth and business expansion. Even in casual conversations, there is a much higher chance that a woman founder will be asked about family responsibilities, and work-life balance.
Have you ever experienced any gender-based biases in your journey as an entrepreneur? How did you address or deal with them?
As I mentioned above, before I started Kaleidofin, I had a proven record as a professional in the financial inclusion and structured finance space and had a strong network in the sector. The experience helped in opening doors and getting the first critical conversation going with partners and investors. While I have not experienced gender bias in India as I sought out investors with strong gender representation who truly saw the value in pushing for diversity, in the early part of my career as an investment banker, I have observed significant discrimination in the workplace, where even HR teams were apathetic to such challenges. One thing that worked well to address this was forming women’s networks (although this was small given women were less than 10% of the workforce), which supported and mentored each other.
“I have not experienced gender bias in India as I sought out investors with strong gender representation who truly saw the value in pushing for diversity.”
What were some key mistakes or learning moments you encountered in the initial years?
What I learnt in the initial years is that no matter how much you love your idea or product, it’s important to always be brutally honest with product-market fit. It’s better to fail fast and keep evolving as that is much more likely to take you towards your goal. We continue to follow this principle for every new initiative at Kaleidofin.
“What I learnt in the initial years is that no matter how much you love your idea or product, it’s important to always be brutally honest with product-market fit.”
As a woman founder, do you feel there are unique qualities you bring to leadership that might differ from your male counterparts?
In my interaction with women in leadership positions, I have observed two distinct qualities that stand out. Firstly, women leaders are more open to learning and asking questions. Even in high-profile meetings, it is not uncommon for women to clarify, ask for additional information and acknowledge the fact that they require more insight on a topic. This clearly indicates a more mature way of leadership and a testament to their commitment to growth. Secondly, women leaders tend to have the innate ability to multitask more effectively. They rarely seem frazzled and unnerved in uncertain situations and maintain their composure under pressure.
“Firstly, women leaders are more open to learning and asking questions.“
How do you manage the balance between your personal life and the demands of being a founder? How important is it to have a support system (family, mentors, peers, etc)?
Maintaining a balance between personal and professional life is a constant choice we need to make. As an entrepreneur, regardless of gender, the initial days of starting a business, establishing a brand can bring in uncertainty of schedules. It thus becomes important to have a strong support system at home to ensure you can give your undivided attention at work. At the same time, at any age, we all need to cater to our parents, children, and other family members. In my experience, we have to respect each other’s personal spaces and create supportive environments. We have seen women (and men) build long and rewarding careers in this environment.
How do you envision your company evolving over the next 5-10 years?
Kaleidofin currently reaches 6.3 million customers in India and has enabled loans worth $4.05 billion. We work with 57 financial service partners who use our flagship product ‘ki score’. We intend to deepen our relationship with existing partners and their customer base by adding services that will further simplify the loan journey for the customers. We would also like to invest towards the development of tailored finance products for target customer segments such as women entrepreneurs and smallholder farmers. As a next step in our growth, we are expanding our risk infrastructure product: ‘ki score’ and ‘ki view’ to other emerging markets such as Africa and Bangladesh where the need for formal financial services is equally high.
What would be your key piece of advice be for women who want to start businesses in India today?
My advice to women founders, at any stage of their business, would be to not get bogged down by the roadblocks you may face or the resistance that you may have to put up with as you are supposedly entering a ‘man’s domain’. If you identify a problem, be clear in explaining the solution too.
“Your confidence and passion can certainly break the glass ceiling.”
Have a clear vision of what you want to do and where you want to go. Your confidence and passion can certainly break the glass ceiling and help you become a successful and assertive entrepreneur. The second piece of advice: always invest in women’s networks. They will be your friend, philosopher and guide in the years to come.
