Accel Closes $650M India Fund to Boost Startups Beyond Metro Cities

Global venture capital firm Accel has successfully closed its eighth India fund, securing $650 million (approximately INR 5,500 crore), as per regulatory filings with the US Securities and Exchange Commission (SEC). The fund received backing from 131 undisclosed investors, matching the amount raised for its previous India fund, Accel India VII, in 2022. This brings the total capital Accel has committed to India’s startup ecosystem to nearly $3 billion.

With this new fund, Accel aims to strengthen its focus on India further, expanding its investment strategy to support unconventional startups, particularly those emerging from non-metro cities. The firm continues to play a role in the country’s startup landscape, having previously invested in successful companies such as Flipkart, Swiggy, and Freshworks.

Accel has long been recognized for its strategic investments across various stages, from seed to growth. With a strong presence in Silicon Valley, London, and India, Accel has long been recognized for its strategic investments. Since launching its India office in 2008, the firm has invested in over 300 companies globally, including unicorns such as Flipkart, Urban Company, and Acko. 

Notably, Accel has seen large returns on its investments, such as in the case of Swiggy. The firm recently earned a 35-fold return on its $20 million investment in Swiggy following its successful IPO in November 2024. Accel tendered 10.5 million shares in the IPO, generating INR 412 crore from the sale.

The venture firm has also seen success with other portfolio companies. Accel was an early backer of Flipkart, investing when the e-commerce giant was valued at just $4 million. After Walmart acquired Flipkart for $16 billion in 2018, Accel retained a 1.1% stake and fully exited the company in 2023, generating around $1.5-2 billion returns. This exit, alongside its profitable Swiggy investment, reinforces Accel’s reputation for nurturing companies with high growth potential and realizing impressive returns.

Accel’s commitment to early-stage innovation remains a core focus. Accel recently invested in Simplismart, an end-to-end MLOps platform for generative AI models. Both investments demonstrate the firm’s continued interest in supporting emerging technologies and innovative startups in high-growth sectors like fintech and AI.

Accel’s recent fundraise comes at a time when India’s startup ecosystem is gaining increasing attention. According to Tracxn’s 2024 Geo Annual Report, India has become the third-largest recipient of venture capital globally, behind the US and the UK. 

As India ranks as the third-largest recipient of venture capital globally, the firm continues to play a crucial role in nurturing high-growth companies. Despite fluctuations in the VC market, with firms like Peak XV Partners reducing their fund sizes, Accel’s latest raise underscores investor confidence in India’s startup landscape. Accel has also recently expanded its investment reach by focusing on non-traditional markets, particularly rural India, where it believes businesses serving smaller towns and cities can achieve long-term success.

Alongside its funding activities, Accel continues strengthening its support for emerging startups through programs like Atoms, which focuses on pre-seed investments in AI, e-commerce, fintech, healthcare, and edtech sectors. The firm has also led seed funding rounds for promising ventures like Swish, a 10-minute food delivery startup, and Moneyview, a lending tech company.