Flipkart Backer Accel Partners Announces $305 Million Fund to Support Indian Start-Ups
In the past few years, technology sector has seen an upward graph. Many e-commerce websites like Flipkart, BookMyShow, Myntra, and CommonFloor came into existence recently and soon became top-tier consumer markets. One of the major support systems that led to the establishment of these firms, were companies such as Accel Partners, a global venture capital firm. The firm has now launched Accel India IV, a $305 million (Rs. 1,900 crore) fund dedicated to empowering Indian start-ups.
The fund launched by the company this time is double the amount raised by Accel Partners last time. The company provided $155 million in 2011 as a part of Accel India III and $60 in 2008 in Accel India II. The California-based growth equity firm aims at solidifying consumer, enterprise software, and mobile sector along with the healthcare division through the recently raised fund.
According to Subrata Mitra, an official from Accel –
While there is more competition (investors) and more start-ups, some of the better companies have begun to accelerate a lot faster and get a lot bigger. So, yes, we do expect to help build many large companies.
In past few years, the number of smartphone users in the country has increased tremendously. This has stimulated to the growth of many internet-related ventures; hence, making India a marketplace where investors are ready to invest their money.
Many global players have made huge investment in the Indian start-ups. Softbank invested $210 million in Ola Cabs and Housing.com, and on the other hand Alibaba contributed $575 million in One97. The favourable conditions for seed ventures in the nation are attracting financiers to invest in the start-ups. It’s a good proposal for the emerging companies and will help them to establish on a larger scale.