On the identical time, Accel’s world development fund based mostly within the US has additionally closed its newest fund with a $1.35 billion corpus, the folks mentioned, citing US Securities and Trade Fee (SEC) filings. A portion of the funds raised shall be allotted to Indian startups of their pre-IPO rounds, the folks added.
As soon as formally closed, Accel’s newest fund will increase its whole commitments in India to almost $3 billion. It indicators a probable extra energetic technique by Accel to deploy capital by means of the India and the US development funds throughout numerous lifecycle phases of startups.
This comes at a time when the enterprise capital agency has had portfolio listings like Swiggy, Blackbuck, with greater than half a dozen of its Indian portfolio corporations set to go public subsequent 12 months. This contains jewelry maker Bluestone which has filed draft papers for its public situation.
The newest India fund shall be deployed to double down on new and present bets. Non-metro markets can even be tapped to faucet a wider vary of entrepreneurs.
Accel India didn’t reply to ET’s queries
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Prime good points and extra
Accel—which first backed Swiggy in 2015–nonetheless holds about 4% within the meals and grocery supply agency valued at round $630 million as of Friday. It sold stakes worth over $50 million during Swiggy’s IPO lately. In whole, Accel had pumped around $75 million in Swiggy, making it one in all its greatest good points.
Accel’s funding in logistics agency Blackbuck can be sitting on good points of 4-5 occasions the unique funding. Final 12 months, Accel sold its remaining 1% stake in Flipkart, netting $350-400 million as a part of a broader stake buy by Flipkart’s US mum or dad Walmart.
Apart from these exits by means of big-ticket offers and IPOs, portfolio corporations like Zetwerk, Captain Recent, and City Firm are among the many checklist of corporations anticipated to go public in 2025.
Based on a Tracxn report, Accel, Peak XV Companions and Elevation Capital had been the highest early-stage buyers in India’s startup sector in 2024.
Luggage maker Uppercase, fast commerce for premium items—FirstClub, fast fashion brand Newme, and 10-minute food delivery firm Swish are amongst offers struck by the agency this 12 months.
VC dry powder
Accel’s subsequent fund, more likely to be introduced solely in 2025, comes at a time when VC funds are sitting on sizable dry powder from funds closed within the final two years. Early-stage fund Stellaris Venture Partners closed a $300 million fund final month.
Lightspeed Enterprise Companions, Peak XV, 3one4 Capital are amongst funds sitting on giant money piles from funds raised over the past 12-18 months. Peak XV recently downsized its $2.85 billion fund by 16% greater than a 12 months after it cut up from Silicon Valley heavyweight Sequoia Capital.
In 2024, Bluestone investor IvyCap Ventures, former KKR India CEO Sanjay Nayar’s Sorin Investments, and climate-focused investor Avaana Capital closed sizable funds this year.
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