Separately, Accel’s US-based global growth fund closed its latest round with a $1.35 billion corpus. A portion of this fund will also be directed towards Indian startups, particularly those in pre-IPO rounds.
A spokesperson for Accel did not immediately comment on the fund close.
Accel’s latest fund coincides with some of its portfolio firms, including Swiggy and Blackbuck, going public. Several other Indian companies where it has invested are also preparing to make initial public offerings, including Bluestone that has already filed draft papers for an IPO.
The latest India-focused fund will be used to double down on both new and existing investments. Accel also plans to expand its focus to non-metro markets, targeting a broader base of entrepreneurs.
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Deals and gainsAccel’s long-standing investment in Swiggy, which it first backed in 2015, remains one of its biggest bets. The investor still holds a 4% stake, valued at about $570 million as on Wednesday, in the food- and grocery-delivery giant. Accel, which had invested about $75 million in Swiggy, sold shares worth more than $50 million during its recent IPO.
Accel’s investment in Blackbuck has yielded gains of 4-5 times. Last year, the firm sold its remaining 1% stake in Flipkart to Walmart for $350-400 million.
Accel holds an around 17% stake in Bluestone, which is looking at a valuation of Rs 12,000-13,000 crore in its public offering this year — a 50% premium to the last funding round.
Companies like Zetwerk, Captain Fresh and Urban Company from its portfolio are gearing up for public listings in 2025.
In 2024, Accel participated in deals with companies such as luggage maker Uppercase, premium goods quick-commerce platform FirstClub, fast-fashion brand Newme and 10-minute food delivery startup Swish. According to a Tracxn report for 2024, Accel, alongside Peak XV Partners and Elevation Capital, is ranked among the top early-stage investors in India.
VC dry powder
Venture capital firms continue to hold significant unallocated money from funds raised in the last two years. For instance, Stellaris Venture Partners recently closed a $300 million fund, while Peak XV, Lightspeed Venture Partners, and 3one4 Capital also hold large reserves.
This trend reflects broader dynamics in the Indian venture capital ecosystem. In 2024, Bluestone investor IvyCap Ventures, Sanjay Nayar’s Sorin Investments and climate-focused Avaana Capital also announced sizable fund closures.
