Accel’s $650 Million Bet on India’s Booming Tech Scene
In a significant move to continue its expansion in South Asia, Accel has raised a hefty $650 million for its eighth India fund. This comes on the heels of their seventh fund, which was secured in March 2022. Accel, known for backing major players like Flipkart, Swiggy, and Freshworks, has cemented its status as a leading venture firm in India. Notably, Accel was the first institutional investor for many of its portfolio companies. For instance, it wrote the initial cheque for Flipkart at a $4 million post-money valuation. Fast forward, and Flipkart now boasts a staggering valuation of over $36 billion.
- Flipkart: Initial investment at $4 million valuation; now worth over $36 billion.
- Swiggy: Seed round led by Partner Anand Daniel at $2 million pre-money; went public with an $11.3 billion valuation.
“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,” said Anand Daniel.
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The landscape of Indian startups has evolved significantly since Accel’s entry over a decade ago. A notable transformation is the rise in public listings, addressing previous criticisms about liquidity. Numerous Accel-backed companies are gearing up for public offerings this year, including Zetwerk and Bluestone.
While other Silicon Valley investors like Sequoia and Matrix have parted ways with their Indian divisions, Accel remains steadfastly integrated. Recently, they’ve shifted focus towards rural India, challenging traditional beliefs by investing in businesses targeting affluent consumers in smaller towns and cities. This strategic pivot underscores Accel’s commitment to finding sustainable success beyond urban centers.
