Importance of Financial Management in Women Entrepreneurship

Women and money have historically shared a complicated relationship. Women today aim to create a positive change by getting deeply involved in financial management. Through women entrepreneurship in India, they seek to build long-term wealth by making informed financial decisions.

The COVID-19 pandemic served as a clarion call to everything and everyone, especially women entrepreneurs in India. Women aimed to take control of their financial future, carving a path to economic empowerment and financial management. Innovation in India grew with female startup founders creating positive impact through innovative solutions and inspiring change, especially among women who want to secure financial freedom for themselves and their families.

At least 45 per cent of India’s startup ecosystem comprises women. The importance of women entrepreneurship in India’s innovation ecosystem, especially in financial management through FinTech. This is the story of Priti Rathi Gupta and LXME.

Paving the Road to Women Entrepreneurship

Priti Rathi Gupta founded LXME in 2017 to empower women with the tools necessary for wise financial management. She states it is India’s first comprehensive financial platform for women and a big step in women’s entrepreneurship in India.

The concept for LXME took shape as Priti had aspired to build a robust FinTech ecosystem that is exclusively tailor-made to serve women’s investment and financial goals.

Married at 19, Priti pursued a post-graduate program in ‘Family Managed Business’ from S.P. Jain Institute of Management and Research (SPJIMR) and an executive degree from Harvard Business School. When she joined her family business at the Anand Rathi Group, she was instrumental in setting up the commodities, currency, and forex advisory desks, exposing her to the gap between women and financial planning. “I was shocked at the lost opportunity this chasm presented in the largely male-dominated financial services industry,” she says. “I made it my life’s mission to educate women about investing.”

Her one goal? “To inspire a wave of financially fearless women to actively and independently manage their money and realise their dreams.” Currently, LXME is empowering over one lakh women in financial management.

A Proud “Financial Feminist”

Priti strongly believes that intelligent financial management empowers homemakers or women entrepreneurs to realise their dreams. Inspired by her own personal and entrepreneurial experiences, she advocates for women to become wealth creators in their own right. The startup ecosystem thrives with women founders breaking new ground and adding to the economy’s wealth pool yearly. According to a recent study, India could potentially add USD 700 billion to the global GDP if more women were to join the labour force.

As many women join India’s workforce, they must understand the ‘language’ of money and start saving and investing for the future. “Women should build their safety nets and tread fearlessly towards financial freedom by wisely investing their hard-earned money,” says Priti. “As a ‘financial feminist,’ I firmly believe that only when women start taking charge of their own money will our society achieve true equality.”

Priti’s Lessons for Women Entrepreneurship

On bootstrapping one’s startup: According to Priti, a woman founder can bootstrap her startup by dipping into her finances. However, this can happen if she carefully invests her money over the years. “Starting a business is expensive, and women must cultivate financial discipline and grit before becoming entrepreneurs,” she says. “Having enough savings, planning for contingencies and ensuring investments set aside for a rainy day are some of the pragmatic financial principles to adopt.”

On rural women entrepreneurs and investment: “Our government recognises the importance of financial inclusion for the growth of our nation,” says Priti. “The foundation of this inclusion lies in the growth of financial literacy among rural women.” While initiatives like Pradhan Mantri Jan Dhan Yojana (PMJDY) and others cater to this segment, LXME is also committed to

empowering rural women entrepreneurship to the investment landscape.

The startup offers introductory courses, live sessions, and community-based discussion forums, creating impact despite socio-economic challenges in women entrepreneurship in India. “We provide calculators to rural women entrepreneurs and give them access to curated investment portfolios that could start as low as INR100,” says Priti. “We believe in giving them all the financial tools they may need to take control of their lives.”

Priti’s 5 Financial Planning Tips for Women Entrepreneurs

Priti believes in actively de-risking her finances amid the early stages of her startup’s journey. She prioritises creating larger safety net pools, participating in private equity investments, creating a dedicated fund for women entrepreneurs and an education trust that supports their academic aspirations.

“I aim to build a community of up to two million financially independent women in the next two years!” the founder of LXME concludes on an enthusiastic note.