HomeTechnologyAccel announces new $650 million fund to back Indian startups – TechCrunch

Accel announces new $650 million fund to back Indian startups – TechCrunch

Accel has introduced its seventh India fund with $650 million to make investments because the storied enterprise investor appears to double down on its wager on the earth’s second largest web market and likewise be extra aggressive within the Southeast Asia area, two companions informed TechCrunch in an interview.

The unveiling of the new fund, whose first set of checks are anticipated to be wired inside weeks, comes lower than two and a half years after Accel unveiled its sixth fund in late 2019.

The Silicon Valley enterprise capital agency, one of many earliest traders in India, has a big portfolio of unicorn startups within the South Asian nation. Some of its notable investments embrace Flipkart, which offered majority stake to Walmart in 2018, Freshworks, which went public final 12 months, high meals supply startup Swiggy, institutional crypto buying and selling and administration platform FalconX, and business-to-business marketplaces Zetwerk, Infra.Market and Moglix.

In the overwhelming majority of its backings, the agency is the primary institutional investor in a startup, stated Shekhar Kirani, a companion at Accel. It participated within the seed financing spherical of e-commerce agency Flipkart, which was then valued at $4 million post-money. Walmart purchased a majority stake in Flipkart for $16 billion. (This helped Accel internet greater than $1 billion in return from Flipkart, which was final valued at over $36 billion.)

Some of the agency’s high performing startups put collectively have exceeded $100 billion in valuation, he stated.

Kirani, who has been with the agency for a decade, credited the emergence of railroads corresponding to funds infrastructure UPI and GST for propelling the expansion of the Indian startup prior to now decade. He stated the Indian economic system will surpass the expansion seen prior to now decade in inside a couple of years.

The agency plans to be extra aggressive in sure sectors together with Web 3 and business-to-business marketplaces, stated Barath Subramanian, one other companion at Accel.  The agency, which started investing in Southeast Asia a couple of years in the past, additionally plans to be extra aggressive within the area with the new fund, they stated. 

Accel right now competes with — or as its companions would say, works with — many peer American funds together with Sequoia Capital India and Lightspeed Venture Partners. Unlike a lot of its rivals, Accel has demonstrably been extra conservative, writing few checks and backing away from startups in the event that they don’t assume they’ll work with the founders.

“We have to work with a startup for 10 years. It’s very important for us to know that we all can work together,” he stated.

Loads has modified within the Indian startup ecosystem since Accel first arrived within the nation. Local corporations raised a report $39 billion final 12 months, up from a couple of million {dollars} from a decade in the past. But a few of the current bounce startups’ valuations and cash being bandied out don’t seem to be sustainable.

This is a growing story. More to observe…

 

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