Accel, a U.S.-based venture capital firm, has raised $650 million for its eighth India fund, further expanding its investment strategy in the South Asian market. This new fund follows the firm's seventh India fund, which was secured in March 2022. With this latest development, Accel solidifies its position as India's most successful venture firm, having backed companies such as e-commerce group Flipkart, food delivery platform Swiggy, and software group Freshworks.

Accel has a remarkable track record in India, serving as the first institutional investor in its portfolio companies. One notable example is Flipkart, where Accel wrote the first institutional cheque at a $4 million post-money valuation. Today, Flipkart is worth more than $36 billion. Similarly, Partner Anand Daniel led Swiggy's seed round at a $2m pre-money valuation, and the company went public in November 2024 with a valuation of $11.3 billion.

By 2022, Accel's top-performing startups had collectively exceeded $100 billion in valuation. The Indian startup dynamics have undergone significant changes since Accel first entered the market over a decade ago. One key shift has been the increasing number of public listings, addressing previous criticisms. In fact, more than half a dozen Accel-backed Indian companies, including manufacturing platform Zetwerk and jeweller Bluestone, are set to go public this year, as previously reported by TechCrunch.

Anand Daniel, a partner at Accel, has expressed his optimism about India's potential as a hub for tech IPOs. "India is fast becoming a promising hub for tech IPOs driven by its strong capital markets and a thriving innovation ecosystem that continues to attract substantial investor interest," Daniel told TechCrunch in November. Accel's continued investment in India is a testament to this sentiment, and its focus on rural India marks a significant shift in strategy.

Unlike some of its rivals, such as Sequoia and Matrix, Accel has chosen not to separate its Indian unit. This decision demonstrates the firm's long-term commitment to the Indian market and its confidence in the region's growth potential. With its latest fund, Accel is poised to continue its successful track record in India, fostering innovation and driving growth in the region.

The Indian startup ecosystem is likely to benefit from Accel's increased investment, particularly in rural areas. As the firm deepens its focus on this underserved market, it is likely to uncover new opportunities and drive sustainable growth. With its strong capital markets and thriving innovation ecosystem, India is well-positioned to become a hub for tech IPOs, and Accel's latest fund is a significant step in that direction.

In conclusion, Accel's $650 million eighth India fund marks a significant milestone in the firm's investment strategy in the region. With its proven track record, focus on rural India, and commitment to the Indian market, Accel is poised to continue driving growth and innovation in the region. As India's startup ecosystem continues to evolve, Accel's latest fund is a testament to the region's potential as a hub for tech IPOs and a thriving innovation ecosystem.