VC firm Accel raises $650 million for Its 8th India Fund

Venture capital firm Accel has raised $650 million (about Rs 5,500 crore) for its eighth India fund, matching the size of its seventh round from 2022.

With this infusion, Accel’s total commitment in India reaches nearly $3 billion, according to recent filings with the U.S. Securities and Exchange Commission.

The firm’s U.S.-based global growth fund also closed its latest round at $1.35 billion, part of which will be channeled into Indian startups, particularly those in the pre-IPO stage.

Boost in IPOs

The new fund comes at a time when some of Accel’s notable Indian portfolio companies are preparing to go public. Food delivery platform Swiggy and logistics firm BlackBuck (Zinka Logistics) recently made their stock market debuts, with Accel reportedly netting 35 times returns on its investment in Swiggy’s $1.35 billion IPO.

The venture capital company initially held more than 20% of Flipkart before cutting its stake to around 6% and fully exiting by 2023, walking away with an estimated $1.5 billion to $2 billion in profits. Accel also counts Freshworks, BrowserStack, Urban Company and Zetwerk among its successful ventures.

Several Accel-backed startups, including Zetwerk, Captain Fresh and Urban Company, have signaled potential initial public offerings in 2025, adding to a growing list of Indian companies eyeing the stock markets.

In a recent interview, Accel partner Prashanth Prakash said the country’s funding environment is buoyant, with nearly 100% quarter-on-quarter growth despite global market uncertainties. Prakash noted that India’s maturing IPO landscape was the “last missing piece” in the startup ecosystem, stating that the puzzle now appears complete.