Founded in Silicon Valley 35 years ago, VC firm Accel Indian subsidiary Accel India raises its sixth $550 fund. This is the largest fund amount Accel India has raised so far.
“Accel India raises its first fund in 2005, the world was a very different place. Just one in 50 Indians had access to the internet and mobile phone ownership was nascent,” the company said in a press statement.
India now has 600 million internet users and the country is also the home of more than 10,000 startups.
Over the last 15 years, Accel has invested in more than 100 of these startups. “When we partnered with Freshworks in 2011, software-as-a-service as a category from India was almost non-existent. Our first cheque was $1 million when the company had six employees. Today, it has more than 2,500 employees and is valued at $3.5 billion. Our seed investment in Swiggy was $1 million when it was making around 100 deliveries a day in Bangalore. Swiggy now handles more than 1 million daily orders and is valued at $3.4 billion,” the company’s statement said.
With digital infrastructure in place, categories like food delivery, digital payments, and e-commerce have a huge potential, the company said. Sectors like agritech, education, insurance, logistics, healthcare, real estate, and manufacturing are also expected to take off.
“In the last decade, Indian tech startups have created around $100 billion of enterprise value and as the GDP doubles in the next decade, we see startups creating disproportionately higher value,” the company said.
Accel’s investments are mostly in Series-A and Series-B rounds. It was one of the early investors in some of India’s marquee startups such as Flipkart, Ola, Myntra, Freshworks, Swiggy, and UrbanClap.
Globally, too, Accel was an early backer of Facebook, Dropbox, and Slack as well.
Accel India raised its previous and fifth $450 million fund in December 2016.