Accel Raises $650M for New India Fund, Backed by 131 Investors
- ByStartupStory | January 2, 2025
Venture capital firm Accel has announced the successful closure of its eighth India fund, securing $650 million with the participation of 131 undisclosed investors. This fund matches the size of its seventh India fund, also raised in 2022.
Accel, a global VC firm with a strong presence in Palo Alto, San Francisco, London, and India, partners with startups across all stages, from seed to growth. Over the years, Accel has invested in over 300 companies, including global giants like Facebook, Slack, and Dropbox.
Accel’s Journey in India
Since setting up its India office in 2008, Accel has played a pivotal role in nurturing the country’s startup ecosystem. It has backed several startups that have grown into unicorns, including Flipkart, Urban Company, and Acko. Recently, Accel achieved a remarkable return of 3391% during Swiggy’s IPO by tendering 10.5 million shares in the offer for sale (OFS), priced at Rs 11.17 per share. The shares sold at the upper end of the IPO price range of Rs 390, generating Rs 412 crore from the sale.
Recent Investments and Market Trends
Accel’s latest investments include FirstClub, founded by former Flipkart executive Ayyappan R, which raised $8 million in seed funding, and Simplismart, an end-to-end MLOps platform for generative AI models.
According to Tracxn’s Geo Annual Report – India Tech – 2024, India ranked third globally in tech funding, trailing behind the United States and the United Kingdom. While overall funding in 2024 saw a 6% rise compared to 2023, it was 56% lower than in 2022, highlighting a challenging funding environment. Late-stage funding grew by 12.09% year-on-year, reaching $7.13 billion, whereas early-stage funding saw a modest increase of 2.09%, totaling $3.16 billion.
Accel’s Vision
Accel’s new fund is expected to strengthen its presence in India and provide critical support to innovative startups in the region, further contributing to the nation’s burgeoning tech ecosystem.
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