Renowned investors Accel and Prosus have unveiled a new joint investment initiative aimed at supporting Indian startups from their inception, with a focus on entrepreneurs developing scalable solutions for the broader population in South Asia.
Revealed on Monday, this partnership represents Prosus’s debut in backing companies at the earliest stage. Both firms will provide co-investment from the outset, prioritizing startups that address fundamental issues in sectors like automation, energy transformation, internet services, and manufacturing.
India, home to over 1.4 billion people and now the most populous nation, is experiencing a surge in its digital sector. With more than a billion internet users and upwards of 700 million smartphone owners, India stands as the world’s second-largest smartphone market after China. Government-supported platforms like the Unified Payments Interface (UPI) and Aadhaar have established a robust digital foundation, enabling startups to launch and expand rapidly. However, much of the startup scene has so far centered on adapting international business models, with fewer ventures tackling significant local challenges. The Accel–Prosus collaboration aims to shift this trend.
This alliance builds on Accel’s Atoms X program, launched in July, which supports what the firm describes as “leap tech” startups — those addressing large-scale, systemic issues.
“We believe the moment has arrived for India’s startup landscape to evolve from replicating global models to developing homegrown solutions that can help the country leap ahead on its path to becoming a developed nation,” said Pratik Agarwal, a partner at Accel, during an interview.
He further noted that startups aiming to solve problems at a national scale often find it difficult to secure enough early funding, due to extended development timelines and the risk of significant dilution before gaining momentum.
“Our hope is to provide much-needed early capital at the right stage, allowing these founders to make meaningful headway without enduring multiple setbacks before achieving progress,” he shared with TechCrunch.
As part of the collaboration, Prosus has pledged to match Accel’s investment in each startup, with initial funding ranging from $100,000 to $1 million, and the possibility of increasing this amount in the future.
“While we could each pursue these opportunities independently, the scale of ambition among these founders and the complexity of the challenges they’re addressing made it logical for us to combine our resources,” said Ashutosh Sharma, who leads the India ecosystem at Prosus.
Historically, Prosus has concentrated on later-stage investments worldwide. The Amsterdam-based company counts Swiggy, Meesho, and PayU among its major Indian investments.
Although Prosus will match Accel’s investments in this venture, Sharma clarified that obtaining an equal equity share is not their objective.
“Securing equity in the initial round isn’t our priority,” he explained to TechCrunch. “If we can spot the next Swiggy, Meesho, iFood, or Tencent at this early stage, that in itself is a win for us.”
This partnership also broadens the range of activities for both Accel and Prosus in India. Recently, the two firms have jointly invested in startups like Arivihan, an AI-driven tutoring platform, and Wiom, a budget internet service provider.
“With the ongoing disruption led by AI, some countries will benefit far more than others, while some may fall behind,” Sharma remarked. “The U.S. and China appear well-positioned to gain. In this global context, what role will India play? Through this ‘leap tech’ initiative, can India secure its rightful place, not just in AI but in broader technological advancements? That’s another key goal of this program.”
This collaboration comes at a time of rising geopolitical tensions that have impacted capital movement, technology supply chains, and market access, prompting international investors to reconsider where they can safely and effectively allocate funds. Thanks to its vast domestic market, growing digital infrastructure, and expanding tech talent, India is increasingly viewed as a strategic destination.
“Given India’s position in the global economy and geopolitics, the country must carve out and accelerate its own path as a self-reliant, independent, and developed nation,” Agarwal told TechCrunch.
Accel’s early-stage program, Atoms, has already supported over 40 startups. More than 30% of these have secured additional funding from outside investors, with Accel itself leading over half of those subsequent rounds.
According to Tracxn, venture capital investment in India dropped 25% year-over-year to $4.8 billion in the first half of 2025, with late-stage deals declining 27% to $2.7 billion and early-stage funding decreasing 16% to $1.6 billion.
Nevertheless, India continues to attract significant attention from global investors, thanks to its huge population and rapid digital adoption. In September, eight venture capital and private equity firms from the U.S. and India — including Accel, Blume Ventures, Celesta Capital, and Premji Invest — formed a coalition to support deep tech startups with over $1 billion in commitments. The Accel–Prosus partnership is the latest sign that international VCs remain committed to India’s long-term growth.
