Accel and Prosus team up to back early-stage Indian startups

Storied investors Accel and Prosus have launched a new investment partnership to back Indian startups from scratch, targeting founders building large-scale solutions with the potential to serve the South Asian nation’s public.

Announced Monday, the collaboration is investing for the first time in the formative phase of the process. Both companies will co-invest from day one in a startup, focusing on companies addressing systemic challenges across sectors such as automation, energy transition, internet services and manufacturing.

India, the world’s most populous country with a population of 1.4 billion, is witnessing rapid growth in its digital economy. The country has More than one billion internet users And 700 million smartphone usersThis makes it the second largest smartphone market after China Indian government-backed platforms such as Unified Payments Interface (UPI) and Aadhaar have created a digital infrastructure that enables startups to quickly build and scale services. So far much of India’s startup activity has focused on adapting global business models, with fewer firms tackling large-scale domestic challenges. The Accel-Prosus alliance is looking to change that.

The partnership expands Excel’s early stage Founders Program, Atom XThe firm launched in July to support what it calls “leap tech” startups — companies working on large-scale, systems-driven problems.

“We think now is the right time for the Indian startup ecosystem to shift from adapting to global business to creating an Indian model that helps India leapfrog the journey of becoming a developed nation,” Prateek Agarwal, said in an interview.

He added that startups working on population-scale solutions often struggle to raise enough early capital, given their long gestation periods and the risk of heavy liquidity before reaching meaningful traction.

“Hopefully, we’re bringing them a lot of seed capital at the right time so that they can make substantial progress without going through several rounds of false starts before they can make progress,” he told TechCrunch.

Under the partnership, Prosus has committed to match Accel’s investment in each company, with initial checks ranging from $100,000 to $1 million – growing over time.

Ashutosh Sharma, Head of India Ecosystem at Prasas, said, “We could have both continued our own work in this space, but given how big these founders’ ambitions are and how difficult the problem they are trying to solve, it made all the sense for us to pool our resources.

Traditionally, Prasas has focused on late-stage investments globally. Amsterdam-headquartered firm count Swiggy, meshAnd payu Among its core investments in India.

While Prosus has committed to match Accel’s investment in the partnership, Sharma indicated that it is not seeking an equivalent equity stake.

“For us, getting that equity in the first round is not important at all,” he told TechCrunch. “If we can really identify a Swiggy, a Misho, an iFood, or a Tencent of tomorrow — today — that’s success enough.”

The partnership also expands Accel and Prosus’ reach in India In recent months, the two companies have co-invested in startups such as AI-powered tutoring platforms. Arivihan and low-cost Internet service providers hello.

“Because of this AI-led disruption happening around us, some countries will be disproportionate beneficiaries — and some countries will be disproportionate net, net losers,” Sharma said. “The two countries that seem to be the beneficiaries are the United States and China. Now in that world order and in that world narrative, what is India’s place? And so, as part of this ‘leap tech’ revolution, can India find the right place, not just in AI, but beyond AI, the other is, we have ambitions with this program.”

The alliance comes amid rising geopolitical tensions that have disrupted capital flows, technology supply chains and market access — prompting global investors to reassess where capital can be deployed safely and at scale. With a large domestic market, extensive digital infrastructure, and a deep pool of technological talent, India is increasingly seen as a strategic priority in this landscape.

“India’s place in the global economy and geopolitical system is such that India needs to chart and accelerate its path as a self-sovereign, independent, developed nation,” Agarwal told TechCrunch.

Accel has already backed over 40 startups through its early-stage program, Atoms. More than 30% of them have raised follow-on funding from external investors, with Asel itself leading more than half of those rounds.

VC funding in India fell 25% year-over-year to $4.8 billion in the first half of 2025, according to Tracxn, with late-stage deals down 27% to $2.7 billion and early-stage funding down 16% to $1.6 billion.

Still, India remains a key focus for global investors driven by its large population and expanding digital adoption. In September, eight US and Indian VC and private equity firms — Accel, Bloom Ventures, Celesta Capital and Premji Invest — incl. Formed an alliance to support deep tech startups With more than $1 billion in commitments. The Accel-Process partnership is the latest example of how global VCs are placing long-term bets on India.