Accel and Prosus Launch New Investment Partnership for Indian Startups
Renowned investors Accel and Prosus have joined forces to establish a groundbreaking investment partnership aimed at supporting Indian startups right from their inception. The collaboration, unveiled recently, represents Prosus’ first foray into investing at the early stage. Together, the two firms will provide funding to startups that are addressing significant challenges across various sectors, including automation, energy transition, internet services, and manufacturing.
India, known for its burgeoning digital economy and a population exceeding 1.4 billion, is experiencing rapid growth. The country boasts over a billion internet users and more than 700 million smartphone users, making it the world’s second-largest smartphone market after China. With government-backed initiatives like the Unified Payments Interface (UPI) and Aadhaar, India has established a robust digital infrastructure that facilitates rapid growth for startups. However, the majority of Indian startups have historically focused on adapting global business models rather than tackling large-scale domestic challenges. The Accel–Prosus partnership aims to change this narrative.
This collaboration expands Accel’s early-stage founder program, Atoms X, which was launched to support “leap tech” startups working on complex, large-scale problems. According to Pratik Agarwal, a partner at Accel, the time is ripe for Indian startups to transition from replicating global businesses to creating indigenous models that propel India towards becoming a developed nation. Startups focusing on solutions that cater to the masses often face challenges in securing early-stage capital due to their lengthy development cycles and the risk of significant dilution before achieving meaningful traction. The partnership between Accel and Prosus seeks to address this gap by providing early-stage funding to propel these startups forward.
Under the agreement, Prosus has committed to matching Accel’s investment in each startup, with initial funding ranging from $100,000 to $1 million, with potential for increased investment over time. Ashutosh Sharma, head of India ecosystem at Prosus, emphasized the importance of pooling resources to support ambitious founders tackling complex problems. While Prosus has traditionally focused on late-stage investments globally, this partnership marks a strategic shift towards early-stage investments in India.
The alliance between Accel and Prosus also signifies a broader scope of activity in the Indian startup ecosystem. Recent co-investments in startups like AI-powered tutoring platform Arivihan and low-cost internet service provider Wiom highlight the partners’ commitment to driving innovation in India. With the rise of AI-led disruption, countries like the U.S. and China are poised to benefit significantly, prompting the question of India’s role in this technological revolution. The Accel–Prosus partnership aims to position India as a key player in the global tech landscape, beyond just AI.
Amidst shifting geopolitical dynamics and disruptions in capital flows, India’s strategic importance is on the rise. The country’s large domestic market, expanding digital infrastructure, and abundant technical talent have captured the attention of global investors looking for long-term growth opportunities. As India strives to establish itself as a self-sovereign, developed nation, partnerships like Accel and Prosus play a crucial role in accelerating the country’s technological evolution.
Accel’s track record in supporting early-stage startups through programs like Atoms underscores its commitment to fostering innovation. Despite a slight decline in VC funding in India in the first half of 2025, the country remains a focal point for investors due to its vast population and increasing digital adoption. The formation of alliances like the one between Accel and Prosus demonstrates the continued confidence of global VCs in India’s potential for long-term growth and innovation.