Flipkart‘s early investor Accel Partners has raised its fifth India-focussed fund with a corpus of $450 million taking its assets under management in the world’s fastest growing economy to slightly over $1 billion. TOI was the first to report the planned fund raise in its May 2 edition. One of the most prominent Silicon Valley venture funds famed for its investment in social networking site Facebook back in 2005, this will be Accel’s largest fund for India. It now joins a select group of early-stage investors like Sequoia Capital and Nexus Venture Partners to manage billion-dollars or more in assets here in India. The new fund has been launched less than two years after the VC firm officially announced Accel IV in March 2015.
While Accel prepares to start investing from the newly raised capital, things have changed dramatically for the local startup ecosystem which has slowed down in the past one year with large consumer internet companies not being able to rack up funds at their existing valuation and investors turning cautious because of lack of exits. But that hasn’t stopped VCs from raising fresh dry powder; six firms have collectively mopped up more than $2.5 billion in the past year to be ploughed into Indian startups, the notable ones being Sequoia Capital’s $920 million Fund V and Nexus Venture Partners’ $450 million fund. [ Times Of India ]