Accel Launches USD 650 Mn Fund Focused on AI, Fintech, Consumer, and Manufacturing Startups In March 2022, Accel launched its USD 650 million seventh India-focused fund, targeting early-stage startups. The latest fund drew significant interest, with participation from 131 undisclosed investors backing regional entrepreneurship.
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Global venture capital firm Accel has announced the closing of a new USD 650 million early-stage fund, its eighth dedicated to India and Southeast Asia. The fund reaffirms Accel's commitment to backing bold entrepreneurs across the region, focusing on transformative ideas in artificial intelligence (AI), consumer brands, fintech, and manufacturing.
With over 16 years of regional expertise, Accel has a proven track record of identifying and nurturing startups that redefine industries, including Flipkart, Swiggy, Freshworks, Urban Company, and BrowserStack.
Prayank Swaroop, Partner at Accel, highlighted, "India is at an inflection point, poised to contribute more to its GDP in the next decade than ever before. This fund will empower founders to scale businesses addressing real-world challenges while delivering global impact."
Strategic Focus Areas
The fund will zero in on sub-categories that align with evolving market dynamics:
- Artificial Intelligence: Investments will target enterprise AI platforms, service automation leveraging India's IT expertise, and vertical AI solutions tailored to specific industries.
- Consumer Brands: Key segments include startups catering to Tier II+ regions, India-native products offering elevated services, and aspirational brands appealing to Gen Z consumers.
- Fintech: Areas of focus include digital wealth management, fintech infrastructure, and innovative distribution channels leveraging India's digital public infrastructure.
- Manufacturing: Startups driving "India to Global" supply chain solutions, value-added manufacturing, and Industry 5.0 innovations are on Accel's radar.
Accel's SeedToScale platform democratises entrepreneurial insights through open-source resources and community support, while the Accel Atoms program has nurtured 36 startups, collectively raising over USD 200 million. In the last two years, the firm has backed over 27 AI startups founded by Indian entrepreneurs.
Shekhar Kirani, Partner at Accel, added, "VC-backed companies in India now exceed USD 50 billion in public market capitalisation, driving the nation's economic progress. We believe India's startup ecosystem will continue to produce resilient, world-class businesses."
With its latest fund, Accel aims to be the first institutional partner to exceptional founders, leveraging its global network and 40+ years of experience to provide mentorship and resources. The fund underscores Accel's belief that India and Southeast Asia will be home to the next wave of category-defining companies reshaping industries and setting global benchmarks.
