Accel has announced a new fund to back Indian startups. The storied venture investor is looking to double down on its bet on the world’s second-largest internet market.
Accel has announced the launch of its seventh India fund, with a $650 million investment target, as it seeks to double down on its bet on the world’s second-largest internet market while simultaneously becoming more active in Southeast Asia.
The new fund’s announcement comes less than two and a half years after Accel’s sixth fund, which debuted in late 2019.
The first round of checks for the new venture are scheduled to be wired within a few weeks.
The Silicon Valley venture capital firm was among the first to invest in India. In the South Asian country, the corporation has a sizable portfolio of unicorn businesses.
Some of its notable investments include backing Flipkart, which sold a majority stake to Walmart in 2018; top food delivery startup Swiggy; and Freshworks, which went public last year.
Accel is the first institutional investor in the vast majority of its investments.
Shekhar Kirani, an Accel partner, credited the recent decade’s success of Indian startup to the advent of railroads such as the payments infrastructure UPI and the tax system GST.
He predicted that the Indian economy would outperform the previous decade’s growth within a few years.
According to Barath Subramanian, another Accel partner, the firm intends to be more competitive in some industries, such as web3 and business-to-business markets.
The firm began investing in Southeast Asia a few years ago. It is also looking to be more aggressive in the region with the new fund.
Subramanian said, “We have to work with a new business for the next 10 years.”