Accel Raises $650 Million for New India Fund to Fuel Startup Growth

Accel, the renowned U.S.-based venture capital firm, has raised $650 million for its eighth India-focused fund. This funding marks a significant expansion of its investment strategy in the rapidly evolving South Asian market.

Accel’s Growth in India: A Legacy of Successful Investments

Accel has established itself as one of India’s leading venture capital firms. Over the years, the firm has made key investments in industry giants such as Flipkart, Swiggy, and Freshworks. The new fund follows the success of Accel’s seventh India fund secured in March 2022.

Key Milestones in Accel’s India Journey

Accel’s track record in India is impressive. It was the first institutional investor in Flipkart, contributing to the company’s rise from a $4 million post-money valuation to becoming a $36 billion company. Accel also played a pivotal role in Swiggy’s seed funding, which saw the company’s $2 million pre-money valuation explode to a $11.3 billion IPO in November 2024, marking the largest global technology IPO of that year.

By 2022, Accel’s portfolio of startups had collectively surpassed a $100 billion valuation. The firm’s foresight in backing these ventures has placed it at the forefront of India’s tech investment landscape.

A Changing India Startup Landscape

The Indian startup ecosystem has transformed significantly since Accel first invested in the country over a decade ago. One major change is the surge in public listings, which has addressed past criticisms about the lack of exits for investors. Notably, companies like Zetwerk and Bluestone, both Accel-backed, are poised to go public soon.

As Accel partner Anand Daniel shared in November 2024, “India is fast becoming a promising hub for tech IPOs driven by its strong capital markets and a thriving innovation ecosystem.” Accel continues to back companies that are poised for long-term success in the public markets.

Accel’s Focus on Rural India

Accel’s vision is also evolving, as it deepens its focus on rural India. The firm is betting against the conventional wisdom that businesses targeting affluent consumers in smaller cities and towns cannot sustain success. By strategically investing in India’s emerging regions, Accel aims to unlock new opportunities that cater to India’s diverse and growing population.

Accel’s Unwavering Commitment to India

Despite global shifts, Accel remains committed to its India unit. Unlike its competitors Sequoia and Matrix, which have distanced themselves from India in recent years, Accel continues to operate in the country, reinforcing its trust in India’s growth potential.

For more details on Accel and its India investments, visit their official website: Accel.

Conclusion

With its $650 million India fund, Accel is poised to strengthen its position as one of the most successful venture capital firms in India. As the startup ecosystem continues to mature, Accel’s investments in public listings and rural India signal a bright future for the firm and its portfolio companies.

Image Credits: Accel