VC Firm Accel Secures $650 Mn For New India Fund

 Accel, the global venture capital powerhouse, has raised USD 650 million (approximately Rs 5,500 crore) for its eighth India-focused fund, according to filings with the US Securities and Exchange Commission (SEC). The fund size matches that of its previous fund, raised in March 2022, bringing Accel’s total investment commitment to India’s startup ecosystem to nearly USD 3 billion.  

The latest fundraise coincides with significant milestones for Accel’s portfolio companies. Swiggy, the food and grocery delivery giant, and Blackbuck (Zinka Logistics) both went public in 2024. Swiggy’s USD 1.35 billion IPO last November marked a key exit for Accel, which tendered 10.5 million shares in the offer for sale, yielding a staggering 35-fold return on its initial investment.  

Accel has been instrumental in shaping some of India’s most notable startups, including Flipkart, Urban Company, and FirstClub. In 2023, the firm exited Flipkart, earning between USD 1.5 billion and USD 2 billion in returns after Walmart’s acquisition of the ecommerce leader.  

In addition to its established investments, Accel has also supported emerging players like Simplismart, an AI-focused platform for generative machine learning operations.  

This new fundraise comes as venture capital firms globally grapple with undeployed capital, or "dry powder." Other players in the Indian ecosystem are also making strategic moves, A91 Partners is reportedly raising USD 700 million, while Stellaris Venture Partners recently closed its third USD 300 million fund.  

Despite a mix of expansion and contraction among peers, including Peak XV Partners reducing its latest fund size to USD 465 million, India remains the third-largest startup ecosystem worldwide, following the United States and the United Kingdom.