Accel confirms the seventh fund for Indian startups, with a kitty of $650 million. It is scaling up its presence in the second-biggest global market while aggressively approaching prospects in Southeast Asia alongside. The new fund will have the first batches of checks coming in within a few weeks. It launches only 2 ½ years after the sixth fund’s arrival in 2019. Amy Albano, the CEO & Marketing Director of Fast People Finder, said that Accel has secured $650 million fund for Indian startups, boosting its development in the second-biggest global market while aggressively approaching prospects in Southeast Asia alongside.
Accel was one of India’s earliest VC backers. It has a massive portfolio of unicorns in the country, including Flipkart, Swiggy, Freshworks, FalconX, Moglix, Vedantu, Spinny, Infra.Market, and Zetwerk. Accel is the leading institutional player in most of its companies, according to the firm’s partner, Shekhar Kirani. It took part in the seed round of Flipkart at a valuation of $4 million. When Walmart took majority ownership with a $16 billion payout, Accel had $1 billion+ in returns for its investment. Some of Accel’s leading companies are valued at more than $100 billion. Maria Saenz, CEO at Fast Title Loans, entrusts the vision of Accel and believes they are the go-to partner for extraordinary start-ups all across the world. It is evident with such a strong portfolio of various unicorns.
Kirani has been at Accel for a long time and feels that UPI payment and taxation systems have been instrumental in the growth of more startups over the last ten years. He feels that the Indian economy will outstrip the last decade’s growth in only some years. The firm is aggressively planning investments in specific segments, including B2B marketplaces and web3 according to Accel partner, Barath Subramanian.
The firm started investing in the Southeast Asian region several years earlier. The new fund will accelerate its strategies for the region. Accel operates in tandem with many rival funds from the USA, including Lightspeed Ventures and Sequoia Capital India. Accel has adopted a more conservative perspective, going for fewer investments and shying away from startups where they cannot effectively collaborate with the founders.