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Gender Lens Investing (GLI) is an investment strategy that balances financial performance with advancing gender equality. This approach emphasizes the strategic value of investing in women as business leaders, consumers, and essential members of the workforce — which is vital for developing stronger, more dynamic enterprises. Investments in these areas often result in higher profitability and faster-growing institutions, demonstrating the economic advantages of a gender-inclusive approach.
GLI has evolved from a niche philosophy to a key strategy that enhances financial insights and generates both economic and social benefits. In dynamic markets such as Bangladesh, GLI not only seeks to close the gender gap in financial inclusion but also aims to enhance investment returns. This strategy is supported by increasing evidence that gender-diverse companies often outperform their less-diverse counterparts in terms of profitability and risk management.
Despite international progress, financial inclusion for women remains uneven, with significant disparities persisting in developing countries like Bangladesh. The World Bank reports that 65% of women worldwide have a bank account, compared to 72% of men, highlighting a persistent barrier to economic equality. Despite various initiatives aimed at boosting financial literacy, enhancing access to financial services, and implementing targeted policies, the financial inclusion of women at higher economic levels and within formal business sectors in Bangladesh remains inadequate. GLI strategies, which include investing in women-led businesses and supporting enterprises that promote gender equity, could catalyze economic growth and innovation in Bangladesh.
In 2021, the total value of sustainable investments reached approximately US$40Tn, yet only US$17Bn was allocated towards gender lens investments, underscoring a significant untapped opportunity. By promoting gender equality and increasing economic opportunities for women, it is estimated that as much as US$13Tn could be added to the global GDP by 2030, benefiting social and economic development worldwide. Additionally, financial institutions may be missing out on at least US$700Bn in annual revenue by not adequately catering to female customers. In the context of Bangladesh, focusing investments on female-owned businesses not only drives broader economic growth but also leverages underutilized human capital, potentially enhancing profitability.
In Bangladesh, the conversation around GLI is gaining momentum, with various initiatives promoting the economic benefits of investing in women. Programs like Biniyog Briddhi (B-Briddhi) and organizations like Truvalu are actively contributing to economic returns by focusing on female entrepreneurs and women-led enterprises.
Supported by the Embassy of Switzerland among other stakeholders, B-Briddhi is enhancing local enterprises through scalable business models and impact-linked financing, aligning financial returns with social impact. In parallel, Truvalu’s application of blended finance solutions is creating a more inclusive economic environment, prioritizing capacity building and financial access for SMEs and startups. This strategy not only expands the pool of investable opportunities but also boosts Bangladesh’s appeal to global investors, illustrating the beneficial link between societal impact and economic profitability.
Impact Investment Exchange’s (IIX) recent Orange Bond Initiative is making strides as the world’s first asset class, created specifically for the Global South, dedicated to advancing gender equality. This initiative, a key component of the broader Orange Movement, aims to establish a financial system that is inclusive of gender perspectives by setting and applying international standards and metrics specifically for gender lens investing. It also strives to unlock new sources of funding for women’s empowerment on a significant scale and accelerate progress towards gender equality through innovative financial solutions.
Together, these initiatives lay a solid foundation for GLI in Bangladesh, contributing to broader economic growth and demonstrating the untapped potential of gender-inclusive investment strategies.
Bangladesh is well-positioned to benefit from gender lens investing. Over the past decade, investments in male-owned startups totaled US$880Mn, while female-founded startups received only US$77Mn, demonstrating a notable funding gap.
10 Year Snapshot: Total Startup Funding Raised in Bangladesh
In 2021, investments in female-founded startups peaked with Praava Health securing US$10.6Mn from global investors. However, the overall trend in investments has shown a decline, indicating the need for more investment in women-led businesses. Historically, healthcare, logistics & mobility have been the leading sectors for female-founded startups, with Shohoz and Maya consistently securing the highest funding. As observed in H’1 2024, there is a pivot towards software and technology, particularly in artificial intelligence. As the country continues to develop its tech infrastructure and the global demand for innovative tech solutions rises, the role of women in these sectors could become increasingly central. With targeted investments and supportive policies, the next decade could see a major shift in how women contribute to and benefit from Bangladesh’s economic landscape. These developments would empower women and bolster the overall economy, making Bangladesh an even more attractive market for global investors interested in sustainable growth and gender equity.
Founded by Sylvana Quader Sinha in 2018, Praava Health is a healthcare provider based in Dhaka, Bangladesh offering a combination of in-clinic and virtual healthcare services tailored to the needs of the Bangladeshi population. Praava Health integrates advanced technology and personal care, operating its diagnostic laboratories to ensure reliable services. The company expanded rapidly, raising US$5Mn in the year of its inception, and securing an additional US$10.6Mn from global investors in 2021 highlighting the increasing confidence in its business model.
As a female-founded company, Praava Health serves as an example of successful gender lens investing in Bangladesh, contributing positively to the healthcare sector while promoting gender equity in business leadership — with women holding key roles such as Chief Innovation Officer, Senior Medical Director, and IT Director. GLI focuses on integrating gender considerations into investment decisions, particularly in businesses that provide essential products and services for women. Given the importance of healthcare, Praava Health illustrates how GLI can effectively support and enhance critical sectors.
Gender Lens Investing combines financial performance with a focus on gender equality, enhancing profitability and encouraging innovation. In Bangladesh, where female financial inclusion is notably low, GLI provides a valuable opportunity to direct investments towards women-led businesses. These investments are critical not only for stimulating economic growth but also for filling existing funding gaps. While initiatives like B-Briddhi and Truvalu illustrate the positive impact of supporting female entrepreneurs, there remains a substantial need for more investments in women-led initiatives; particularly in sectors like technology that are geared for rapid advancement. For investors particularly attuned to emerging markets, Bangladesh offers a compelling narrative where gender lens investing can deliver dual benefits: steady returns and sustainable growth. Collaborative efforts can create a more inclusive and prosperous future for Bangladesh.
This article was originally published in ExitStack.
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