Accel, the venture capital firm known for its backing of Indian startups like Flipkart and Swiggy, has raised $650 million for its eighth India-focused fund. Filings with the US Securities and Exchange Commission (SEC) revealed this milestone, bringing Accel’s total investment commitment in India to nearly $3 billion.
This fund mirrors the size of Accel’s seventh India fund, announced in 2022, which also secured $650 million. Accel continues to solidify its position as one of the most prominent venture capital firms fueling the Indian startup ecosystem.
Focus on Indian Startups
Accel plans to use the new fund to support Indian startups across early and growth stages. Indian entrepreneurs have become key contributors to the firm’s success, as Accel’s portfolio includes companies that have revolutionized various industries. Startups in sectors such as e-commerce, logistics, fintech, and SaaS stand to benefit the most from this fund.
In addition to the India-specific fund, Accel’s global growth fund recently closed at $1.35 billion. A portion of this fund will target late-stage Indian startups, especially those preparing for IPOs. This dual approach reinforces Accel’s commitment to nurturing Indian innovation and scaling businesses to global levels.
Recent IPO Successes: Swiggy and BlackBuck
Accel’s latest fund announcement coincides with the public listings of two of its portfolio companies: Swiggy and BlackBuck. These IPOs demonstrate the value Accel creates for its portfolio companies and investors.
Swiggy’s IPO in November raised $1.35 billion, making it the sixth-largest IPO in Indian history. The listing was oversubscribed 3.59 times, reflecting strong investor demand. Accel earned a remarkable 35x return on its investment in Swiggy. Reports indicate Accel had invested approximately $75 million in the food delivery giant, starting with a Rs 12 crore investment alongside SAIF Partners in 2015 when Swiggy was just seven months old.
BlackBuck, a logistics firm, also went public recently, further strengthening Accel’s reputation for identifying and nurturing high-growth startups. These liquidity events underscore the firm’s ability to capitalize on India’s booming IPO market.
Flipkart: Accel’s Flagship Success Story
Accel’s early investment in Flipkart remains one of its most notable achievements. In 2008, Accel acquired a significant stake in Flipkart, which later became a household name in Indian e-commerce. By the time Walmart acquired a majority stake in Flipkart for $16 billion in 2018, Accel had reduced its holdings to 6%. The acquisition valued Flipkart at less than $21 billion at the time.
Accel retained a 1.1% stake post-acquisition and fully exited the company by 2023. Reports suggest Accel generated returns between $1.5 billion and $2 billion, representing a 25–30x return on its initial investment. This extraordinary success solidified Accel’s standing as a powerhouse in India’s venture capital ecosystem.
Upcoming IPOs: Bluestone, Zetwerk, and More
Accel continues to prepare its portfolio companies for public listings. Jewellery retailer Bluestone has filed draft papers for its IPO, signaling another high-profile exit for the venture capital firm. Several other companies, including Zetwerk, Captain Fresh, and Urban Company, aim to go public in 2025.
Prashanth Prakash, a partner at Accel, emphasized the growing IPO momentum in India. He highlighted how IPOs like Swiggy’s are becoming significant liquidity events for investors. These public listings attract domestic investors, family offices, and local funds, creating a more vibrant and self-sustaining startup ecosystem.
The Evolving Funding Landscape
The Indian startup funding environment has experienced a resurgence in recent quarters. Reports show that total funding raised by Indian startups doubled year-on-year in the third quarter of 2024. Startups raised $3.4 billion in Q3 2024, compared to $1.7 billion during the same period in 2023.
Prakash noted that IPOs have completed the startup ecosystem puzzle, providing much-needed liquidity for founders and investors. He also observed that Bengaluru alone could witness over 10 IPOs in 2025, cementing the city’s status as India’s startup hub.
Accel’s Strategic Vision for India
Accel’s strategic investments highlight its confidence in India’s growth story. The eighth fund will prioritize startups with high potential, strong leadership, and scalable business models. By supporting companies from early stages to pre-IPO, Accel ensures long-term value creation.
The firm’s dual focus on early-stage and late-stage investments strengthens its ability to drive innovation and enable successful exits. Accel’s approach aligns with India’s evolving market dynamics, where startups increasingly aim for global recognition and public listings.
The Role of Domestic Investors
Indian investors now play a larger role in funding the country’s startups. Family offices, local venture funds, and domestic institutional investors have stepped up, reducing reliance on global funds. This shift reflects the maturing of India’s entrepreneurial ecosystem.
Accel actively engages with domestic investors to co-invest in its portfolio companies. This collaboration fosters a stronger funding environment and enhances the credibility of Indian startups.
Challenges and Opportunities
While Accel’s achievements are impressive, the Indian startup ecosystem faces challenges. Regulatory uncertainties, market volatility, and stiff competition require careful navigation. Accel’s expertise in identifying disruptive technologies and scalable models gives it a competitive edge.
The firm also focuses on long-term trends such as digitization, financial inclusion, and sustainability. These areas present significant opportunities for startups to address pressing global challenges while creating value.
The Road Ahead
Accel’s eighth India fund positions the firm to drive the next wave of innovation. By supporting a diverse range of startups, Accel fosters entrepreneurship and economic growth. Its ability to deliver outsized returns on investments like Flipkart and Swiggy underscores its expertise in scaling businesses.
As IPOs gain momentum, Accel’s portfolio companies will likely dominate the public markets. With robust funding and a clear strategic vision, Accel remains at the forefront of India’s startup revolution.
Conclusion
Accel’s $650 million eighth India fund highlights its unwavering commitment to the Indian startup ecosystem. The firm’s investments have shaped some of the country’s most successful companies, including Flipkart, Swiggy, and BlackBuck. With several portfolio companies preparing for IPOs, Accel continues to drive innovation and create value.
The evolving funding landscape, increasing domestic participation, and growing IPO activity signal a bright future for Indian startups. Accel’s strategic approach ensures it will remain a key player in this transformation, empowering entrepreneurs to build world-class businesses.