Accel’s Successful Venture in India
Accel, a leading US-based venture firm, has raised an impressive $650 million for its eighth India fund. This new development follows the firm’s seventh India fund secured in March 2022, showcasing its continued commitment to investing in Indian startups. With this new fund, Accel aims to further expand its investment strategy in the South Asian market.
Accel’s Investment Strategy in India
Accel has established itself as India’s most successful venture firm, with a track record of backing companies that have achieved significant success. Some notable examples include e-commerce group Flipkart, food delivery platform Swiggy, and software group Freshworks. The firm’s investment strategy focuses on identifying startups with potential for growth and providing them with the necessary funding to scale.
Accel’s First Institutional Investor in India
Accel has played a pivotal role in shaping the Indian startup ecosystem. As the first institutional investor in many of its portfolio companies, the firm has demonstrated its ability to identify and nurture talent. One notable example is Flipkart, which received its first institutional investment from Accel at a $4 million post-money valuation. The investment has since surged in value, with Flipkart now worth over $36 billion.
Swiggy’s Success Story
Accel also backed Swiggy’s seed round at a $2 million pre-money valuation. Swiggy went public in November 2024, becoming the largest global technology IPO of that year, with a valuation of $11.3 billion. This success story is a testament to Accel’s ability to identify and support high-growth startups.
Evolution of Indian Startup Dynamics
The Indian startup ecosystem has undergone significant changes since Accel first entered the market over a decade ago. One key shift has been the increasing number of public listings, addressing previous criticisms. More than half a dozen Accel-backed Indian companies, including manufacturing platform Zetwerk and jeweler Bluestone, are set to go public this year.
Accel’s Focus on Rural India
Accel has recently deepened its focus toward rural India, betting against conventional wisdom that businesses serving affluent consumers in smaller cities and towns can achieve sustainable success. This shift reflects the firm’s commitment to supporting startups that have a broader impact on Indian society.
Rethinking Early-Stage Startup Investing in India
Accel’s approach to early-stage startup investing in India is distinct from other venture firms. While rivals such as Sequoia and Matrix have cut ties with their respective India funds, Accel remains committed to the market. The firm’s focus on identifying and supporting high-growth startups has enabled it to achieve significant success.
Quotes from Anand Daniel
Accel partner Anand Daniel commented on the Indian startup ecosystem, stating: "India is fast becoming a promising hub for tech IPOs driven by its strong capital markets and a thriving innovation ecosystem that continues to attract substantial investor interest."
Accel’s Commitment to India
Accel’s commitment to investing in Indian startups reflects its confidence in the country’s growth potential. The firm’s willingness to continue investing in the market, even as rivals have exited, demonstrates its long-term vision for the Indian startup ecosystem.
Conclusion
Accel’s eighth India fund is a testament to the firm’s continued success in the South Asian market. With a track record of backing high-growth startups and a commitment to supporting Indian entrepreneurs, Accel remains one of the most successful venture firms in India.
About the Author
Manish Singh is a senior reporter at TechCrunch, covering India’s startup scene and venture capital investments. He has written for numerous publications, including CNBC and VentureBeat, before joining TechCrunch in 2019.