Accel Secures $650 Million Corpus for Eighth India Fund

Accel, an early investor in Flipkart and Swiggy, has closed its eighth India-focused fund, securing $650 million from investors, as per regulatory filings reported. This brings Accel's total investments in India close to $3 billion.

Accel closed its new fund at $650 million, as announced on December 21.Meanwhile, Accel’s global growth fund in the US raised $1.35 billion. Part of this fund will be used to support Indian startups, especially those nearing IPO stages.

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Accel’s eighth fund matches the size of its seventh fund, which also raised $650 million in March 2022. The latest fund was closed shortly after two of its portfolio companies, Swiggy and Blackbuck (Zinka Logistics) went public. Notably, Swiggy’s $1.35 billion IPO was one of the largest for modern startups since Paytm’s $2.4 billion debut in 2021.

Accel investments and Profits

Accel’s investments continue to make significant gains with its long-standing backing of Swiggy standing out as one of its biggest successes. Since first investing in the food and grocery delivery giant in 2015, Accel has retained a 4% stake valued at about $570 million, after investing $75 million. It also sold over $50 million worth of shares during Swiggy’s recent IPO. Accel’s investment in Blackbuck has seen a 4-5x return, and the firm recently sold its remaining 1% stake in Flipkart for $350-400 million to Walmart. Holding a 17% stake in Bluestone, Accel expects a 50% premium on its valuation when Bluestone goes public this year.

Other portfolio companies like Zetwerk, Captain Fresh, and Urban Company are also preparing for public listings in 2025. In 2024, Accel made strategic investments in companies like Uppercase, FirstClub, Newme, and Swish. Recognized as one of India’s top early-stage investors, Accel ranks alongside Peak XV Partners and Elevation Capital, according to a report.

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