Venture capital firm Accel announced its eighth early-stage fund on Monday, committing $650 million to boost the next generation of innovative startups in India and Southeast Asia. The fund will significantly focus on AI startups with a focus on India.
AI for India
On the AI front, Accel plans to invest in three main categories. These include enterprise AI, where platforms enable AI use cases with agentic technologies, large language models, and small language models; services as software, where AI startups leverage India’s IT services capabilities for automation offerings and vertical AI, where startups integrate AI into industry-specific applications.
“This growth opens new doors for entrepreneurs to build solutions with global relevance while addressing local challenges, and we can’t wait to meet them,” Accel said in a recent blog announcement.
Accel’s Fund VIII also aims to tap into other areas such as consumer brands, fintech and manufacturing.
In the consumer segment, the emphasis is on startups catering to Bharat, which is the top 30% of households in tier-2 regions, addressing the rising demand for premium services and creating aspirational brands that capitalise on Gen Z’s increasing discretionary spending.
When it comes to fintech, the focus areas include digital wealth management platforms for affluent consumers, fintech infrastructure bridging banks and fintechs for seamless digital experiences, and startups leveraging India’s digital infrastructure to accelerate financial product distribution.
In manufacturing, the fund supports startups that meet global demand for diversified supply chains, India-focused value-added manufacturing, and Industry 5.0 solutions that bring next-generation digital technologies to factory floors for enhanced efficiency, sustainability, and output quality.
Accel Continues to Grow Indian Startups
To support founders beyond financial investment, Accel has launched initiatives such as SeedToScale, an open-source platform for company-building insights, and Accel Atoms, an early-stage scaling program that has supported 36 startups to date and collectively raised over $200 million.
Accel sees a significant opportunity for venture-backed companies to shape the economic landscape, where India’s GDP is expected to touch approximately $8 trillion over the next decade. Currently, VC companies represent less than 5% of India’s market capitalisation.
Accel’s commitment to the Indian startup ecosystem is strong with early investments in successful companies such as Flipkart, Freshworks, and Swiggy. The firm has been the first institutional investor in 80% of its portfolio companies.
Prayank Swaroop, partner at Accel, said, “We believe AI will be a game-changer, and we’re excited to support startups at the forefront of this technology.”
