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Born in an Urdu speaking family, Fatma Begum was related to Nawab Sidi Ibrahim Muhammad Yakut Khan III. She was the mother of Zubeida Begum Dhanrajgir, Sultana and Shehzadi, who were popular actors of the silent era. She started working in films in 1922 after getting trained in plays. Fatma worked with filmmakers like Ardeshir Irani and Nanubhai Desai before founding her own production company Fatma Films which was later rechristened as Victoria-Fatma Films. 'Bulbule Paristan' that released in 1926, became the first Indian film to be directed by a female director.
However, acting remained on her wish list and she continued to act till late 1930s