Highlights
Accel Secures $650 Million for Eighth India Fund
Venture capital firm Accel has successfully raised $650 million for its eighth fund dedicated to India, with contributions from 131 undisclosed investors. This follows the firm’s previous seventh India fund, which also raised $650 million in 2022.
About Accel
Accel is a leading global VC firm that collaborates with startups at various developmental stages, from seed funding to growth phases. The firm operates from offices located in:
- Palo Alto, California
- San Francisco
- London
- India
Since its inception, Accel has invested in over 300 companies, including renowned names like:
- Slack
- Dropbox
Accel’s India Journey
Since launching its India office in 2008, Accel has supported numerous startups, several of which achieved unicorn status, including:
- Flipkart
- Urban Company
- Acko
A notable move was Accel’s participation in the Swiggy IPO, where the firm tendered 10.5 million shares for sale, achieving an impressive return of 3391% based on an acquisition cost of Rs 11.17 per share. This calculation assumes a sale price at the upper limit of the IPO price range, which was Rs 390, generating Rs 412 crore from the sale.
Recent Investments
Accel has recently backed FirstClub, a startup founded by former Flipkart executive Ayyappan R, which successfully raised $8 million in seed funding. Additionally, the firm previously invested in Simplismart, an end-to-end MLOps (machine learning operations) platform tailored for generative AI models.
India’s Position in Tech Funding
As highlighted in Tracxn’s ‘Geo Annual Report – India Tech – 2024’, India ranks as the third-highest recipient of funding globally, following the United States and the United Kingdom. In 2024, total funding rose by 6% compared to 2023, yet this figure represents a 56% decline from the levels seen in 2022.
Notably, late-stage funding experienced a year-on-year growth of 12.09%, reaching a total of $7.13 billion, whereas early-stage funding saw a modest increase of 2.09%, totalling $3.16 billion.
