Venture capital firm Accel is partnering with Prosus, a global investment group, to co-invest in early-stage Indian startups. The collaboration will focus on companies building breakthrough technologies in areas including robotics, advanced manufacturing, and artificial intelligence (AI) applications.
The firms will each match investments up to $2 million through Accel's Atoms X program. This program is designed for "LeapTech" businesses that require longer development cycles compared to traditional software startups. Accel's Partner, Pratik Agarwal, stated that they are looking to support ideas that can create significant market transformation through innovations in cost, access, or performance.
This partnership marks Prosus' first global co-investment alliance of its kind. Both companies aim to gain exposure to startups that may take 10 to 15 years to mature but have the potential to dominate their respective categories through technical differentiation. Ashutosh Sharma, Head of India Ecosystem at Prosus, noted that Accel is a natural partner for this collaboration.
Accel India is the Indian arm of Accel, a global venture capital firm founded in 2008. It focuses on early-stage investments in Indian startups and leverages Accel's global network and expertise. Accel India has played a significant role in the growth of several prominent Indian companies, including Flipkart, Swiggy, and Freshworks. Accel India's investment strategy revolves around identifying and supporting exceptional entrepreneurs with innovative ideas across various sectors. The firm has consistently increased its fund sizes to support its portfolio companies through multiple funding rounds, demonstrating a commitment to their long-term success. Accel's investment areas include consumer internet, SaaS, fintech, and healthcare. Accel has approximately $3 billion in total investment commitment in India. In January 2025, Accel raised a $650 million early-stage fund for startups in India and Southeast Asia.
Prosus, which began operations in 2019, is a global venture capital firm based in India that prefers to invest in companies operating in AI/ML, consumer, and fintech sectors. Prosus Ventures has invested in approximately 20 early and growth-stage companies, including Swiggy, Meesho, Urban Company, and Mensa. Prosus has invested $8.6 billion in India so far. Fabricio Bloisi, the Group CEO, aims to build a portfolio worth $50 billion in the coming years through a mix of investments and acquisitions. Prosus is focusing on building lifestyle e-commerce ecosystems in India, Latin America, and Europe, investing in sectors like food delivery, fintech, consumer services, and digital e-commerce.
This collaboration between Accel and Prosus highlights the increasing interest in India's early-stage startup ecosystem, particularly in sectors requiring advanced technological solutions. By combining their resources and expertise, Accel and Prosus aim to support and nurture Indian startups developing innovative solutions to global problems. Prosus sees India as a unique context for LeapTech founders due to its large population and limited resources.
