Accel raises $650 mn fund to invest in Indian and SE Asian start-ups

Enterprise capital (VC) agency Accel, an early investor in unicorns like Flipkart, Swiggy, Zetwerk, Cultfit, Acko and others, has raised its seventh fund for India and SE Asia with a corpus of $650 million.

“India presently has 200 million digitally transacting customers, a quantity that’s anticipated to develop to 500 million within the subsequent 5 years. In India and Southeast Asia we’re the primary institutional investor in over 85 per cent of our investments, and 95 per cent of our investments are Seed or Sequence A,” the agency mentioned.

Its earlier fundraise was closed in December 2019 with a corpus of $550 million. Earlier than the most recent fund, Accel India had cumulatively raised over $1.5 billion throughout six funds. Accel India was arrange in 2008 by Mahendran Balachandran, Subrata Mitra and Prashanth Prakash and is considered one of many prime VCs.

The most recent fund can also be an affirmation of Accel’s observe report. It was the primary investor in Flipkart, placing in a measly $800,000 in 2008. In 2018, when Walmart acquired Flipkart at a valuation of $21 billion, Accel is alleged to have made $800 million – $1 billion, on a complete funding of $125 million, whereas nonetheless retaining some stake.

It additionally put $1 million seed cash in Swiggy which has develop into one of many prime food-tech gamers within the nation valued at $10.7 billion.

“After we established Accel’s first fund in India in 2005, only one in fifty Indians had entry to the Web. Even so, there have been early indicators indicating a major tech ecosystem may very well be constructed throughout the area: a younger and vibrant pool of technical expertise, an rising center class with growing means to eat, and people with aspirations to innovate and construct,” the agency mentioned.

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