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Venture capital firm Accel secures $650 million for eighth India fund

Accel earned a 35x gain on its investment in Swiggy's initial public offering (IPO), marking one of the biggest gains for the Silicon Valley fund

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Peerzada Abrar Bengaluru
2 min read Last Updated : Jan 01 2025 | 10:31 PM IST
Accel, the venture capital firm backing startups like Flipkart and Swiggy, has raised $650 million (Rs 5,500 cr) for its eighth India fund, regulatory filings with the US Securities and Exchange Commission (SEC) showed.
 
The size of the eighth fund is the same as the seventh round raise in 2022. After this round, the firm's total investment commitment in India will be nearly $3 billion.
 
Accel's US-based global growth fund also closed its latest round, raising $1.35 billion. A portion of this will be allocated to Indian startups, especially those in pre-IPO stages.
 
An Accel spokesperson did not comment on the fund closing.
   
Accel earned 35x returns on its investment in Swiggy's $1.35 billion initial public offering (IPO. In total, Accel had reportedly pumped around $75 million in Swiggy,
 
Accel held more than 20 per cent in Flipkart initially when it backed the company in 2008. It later reduced its stake to about 6 per cent before Walmart acquired a majority share in Flipkart in 2018. 
 
The firm fully exited the company by 2023. This generated returns of about $1.5 billion-$2 billion or 25-30X on its total investment, according to sources.
 
Other portfolio companies like Zetwerk, Captain Fresh and Urban Company are also gearing up for public listings in 2025.
 
In a recent interview, Prashanth Prakash, a partner at Accel, said the funding environment, which has witnessed a slowdown, was buoyant right now with almost 100 per cent quarter-on-quarter growth.
 
“We see this kind of momentum accelerated and catalysed by the IPO opportunity seen in the country. That was the last missing piece in the startup ecosystem, and now the puzzle is kind of complete,” Prakash had said.

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First Published: Jan 01 2025 | 6:21 PM IST

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