After debuting a new $100 million big data initiative, Accel Partners is expanding its presence in another areas, though this time in a geographic region of the world. Accel is closing its third India fund, totaling $155 million, to invest in seed and early-stage opportunities in the region.
Accel previously launched two India funds. The most recent fund was launched in 2008 and totaled $65 million. Clearly Accel is doubling down on India and believes in a strong future in technology startups in the geographic area. Currently, Accel has 34 portfolio companies in India, including Flipkart, Myntra, Letsbuy, HealthcareMagic, Babyoye, and Exclusively.IN.
Accel says the fund ha a number of attracted top-tier institutional investors from North America, Europe and Asia, and will focus on opportunities in Internet services, digital media, SaaS and enterprise technologies, mobile, healthcare and education, and other sectors.
Accel Partner Sameer Gandhi tells me that investments will range from as small as tens of thousands of dollars, all the way up to as much $7 to $8 million. The typical investment size will be around $1 million to $2 million, he explains. On a selective basis, Accel will also evaluate high growth later stage opportunities with the new fund as well.
“I think there’s a significant long-term opportunity in India given the natural growth rate of the economy and the emergence of a sizable middle class,” Gandhi explains. “What excited us about the region is the growing number of young internet companies, and momentum of internet and mobile users. We are seeing a definite acceleration of local and online internet companies in the region.”
Accel Partners has eleven investment professionals based in India, led by four partners: Mahendran Balachandran, Shekhar Kirani, Subrata Mitra, and Prashanth Prakash.
It’s no secret that Accel is definitely looking abroad as a way to capitalize on the growth taking place in emerging markets. Gandhi confirms that the firm just raised a 2011 China fund, and Accel has also been making a number of investments in Brazil via its U.S. fund. Accel also has a dedicated fund for investments in Europe and Israel. In total, Accel currently has over $8 billion under management worldwide.