Money News

Accel raises $550 million for new India fund

BENGALURU (Reuters) - Silicon Valley venture capital firm Accel said on Monday it had raised $550 million for a new India-focused fund aimed at backing early-stage startups in the country.

Accel launched in India in 2005 and has invested in several leading startups including online retailer Flipkart, which was bought by Walmart Inc last year. The firm counts Facebook Inc and Spotify Technologies among its marquee global investments.

Increased internet access and a growing middle class have led to a boom in startups in India. Japan’s Softbank Group Corp has said it expects to invest up to $4 billion in the country over the next two years.

“With a robust digital infrastructure firmly in place (and expanding rapidly), we expect digital adoption in India to only accelerate,” Accel said in a statement.

“We see this trend playing out not only in categories like food delivery, digital payments, and e-commerce, but also across sectors like agritech, education, insurance, logistics, healthcare, real estate, and manufacturing.”

The latest fund is Accel’s 6th for India. The firm raised $450 million in 2016.

(Corrects venture capital firm’s name in headline and first graph to Accel from Accel Partners in story dated Dec. 2)

Reporting by Nivedita Bhattacharjee in Bengaluru; Editing by Saumyadeb Chakrabarty