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Accel Partners will use $550 million to invest in seed and early-stage startups to increase its early-stage investments in the country.
FREMONT, CA: Accel Partners, a Silicon Valley-based VC firm, has raised its sixth India fund worth $550 million to increase its early-stage investments in the country.
The company said in a recent post that they would invest the new capital in seed and early-stage startups across what they believe to be one of the most vibrant entrepreneurial ecosystems in the world: India.
In 2005, a 35-year old American VC set up its first fund in India, and now it has scaled its team to over 50 people in India and manages $1.6 billion in assets.
Earlier in 2005, the world was a very different place, with only a few people in India had access to the internet and mobile phone ownership was also nascent. But that time also people firmly believed that India was on the cusp of a significant change.
The VC firm says that today the opportunity ahead is significantly more significant than when they started in 2005. India can now digitally recognize 1.3 billion people, with more than 500 million internet users, and 150 million online transacting consumers with a national payments platform that processes $20 billion a month.
Swiggy, Freshworks, Cure.fit, BlackBuck, BookMyShow, and Bounce are some of the most notable portfolios. Accel Partners also invested in Flipkart, which earned it $1 billion in 2018.
Accel Partners has invested in more than 100 early-stage startups in India. In the past years, Accel Partners has primarily invested in five categories consumer internet, software, business-to-business, healthcare, and financial technology. In the coming years, it will continue to invest in these spaces and more.
The VC firm is already watching this trend playing out in categories like food delivery, digital payments, ecommerce, agrotech, education, insurance, logistics, healthcare, real estate, and manufacturing.
