You can be on Entrepreneur’s cover!

VC Firm Accel Partners Closes the Sixth Indian Fund Worth $550 Mn. Here's Why This is an Important Step Accel Partners has been operating in India since 2005 and has invested in more than 100 start-ups

By Bhavya Kaushal

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Accel Partners

Venture capital firm, Accel Partners, announced the close of its sixth India fund at $550 million which will be primarily invested in seed and early stage startups in India, according to its official statement.

The Palo Alto-based VC firm has already invested in more than 100 early-stage Indian technology start-ups such as Walmart acquired Flipkart, Zomato, Swiggy, Freshworks, Ninjacart, Urban Clap, Blackbuck, Curefit, CleverTap etc.

Ruling Investments in India Since 2005

Accel made its advent in India in 2005, a time when the digital bubble had burst and India was climbing the ladder of progress and digitization. "Just 1 in 50 Indians had access to the internet and mobile phone ownership was nascent. Yet we firmly believed that India was on the cusp of a big change," the statement read. The prediction made by Accel turned out to be true as India today has the third largest start-up ecosystem in the world after USA and China.

Highlighting how internet changed the Indian startup ecosystem, the VC said that "India can now digitally identify 1.3 billion people, has 600 million internet users and 150 million online transacting customers with a national payments platform that processes $20 billion a month."

Is India Difficult Market For Foreign Investors

According to a Bloomberg survey, 92 per cent of respondents from Singapore, Tokyo, Melbourne, Hong Kong, London, New York, Dubai and India said that they would increase their participation in India if access was easier. About 76 per cent said that access India's financial market is more difficult compared to other markets they participated in.

According to the report, a majority of respondents (37%) believe clear regulatory guidelines will increase ease of access and lead to deeper foreign investor participation.

India is suffering from a low investor to start-ups ratio. The number of home-grown venture capital firms, private equity firms and angel investors are numerous in India but not enough to match the needs of the rapidly expanding Indian start-up ecosystem. Big checks from international investors spur innovation and technological advancements, thus making the position of Indian start-ups competitive on the global platform.

Accel is an investor that has been supporting the Indian start-up ecosystem since the early days of Indian entrepreneurial ecosystem.

Achieving the $5 Tn Economy Goal

The government of India recently announced the goal of becoming a $5 trillion economy by 2025. Start-ups have a significant role in helping Indian economy achieve the goal. From job creation to providing technology-backed solutions to the core predicaments of society in sectors such as agriculture, healthcare, education etc, the role of Indian start-ups cannot be underestimated.

Accel recognizes this when it says, "In the last decade, Indian tech startups have created around $100 billion of enterprise value and as the GDP doubles in the next decade, we see startups creating a disproportionately higher value."

At a time when start-ups are expected to play an important role in achieving this goal, investors' and funding support is essential for the startups to scale up.

Bhavya Kaushal

Former Features Writer

I am a work-in-progress writer and human being. An English graduate from Delhi University, writing is my passion and currently, I was Entrepreneur India's start-up reporter. I love covering start-ups and weaving their stories into unforgettable tales with the power of ink! 
Business News

Side Hustles Are Soaring as Entrepreneurs Start Businesses Working Part- or Full-Time Elsewhere, According to a New Report

The younger the entrepreneur, the more likely they were to start a business as a side hustle.

Business News

Scrabble Makes First Change to Its Board in Over 75 Years

The new roll out is only available in Europe as of now.

Business News

CPI Report: Inflation Rose More Than Expected in March, Driven By Housing and Energy Costs

The average U.S. household is paying $227 more per month for goods compared to one year ago.

Business Process

AI-Generated Images or Stock Photography? Here's How Entrepreneurs Can Navigate the Dynamic Photography Industry

Entrepreneurs eyeing long-term financial gains find stock photography, a $4 billion market in 2023, enticing. Yet, AI's rise prompts a shift from cameras to algorithms.

Thought Leaders

Many of Your Employees Are Probably Healing From Past Workplace Trauma. Here's How You Can Help Empower Them.

There is no magic way of healing people of their preexisting workplace trauma — but leaders can (and should want to) help.

Side Hustle

This Insurance Agent Started a Side Hustle Inspired By Nostalgia for His Home State — Now It Earns Nearly $40,000 a Month

After moving to New York City, Danny Trejo started a business to stay in touch with his roots — literally.