Dutch technology investor Prosus and the US-based venture capital firm Accel have partnered to jointly invest in early-stage Indian startups focused on advanced manufacturing, energy transition, and AI-driven automation.
This collaboration, announced on Monday, represents Prosus’s inaugural early-stage investment. It enhances Accel’s Atoms X program, designed for early-stage entrepreneurs, with Prosus set to match Accel’s contributions to each chosen startup.
The total funding for seed investments under this initiative will range from $200,000 to $2 million, Accel partner Pratik Agarwal told the Economic Times.
The program aims to support companies that are either innovating in technology or developing unique business models, he explained, adding, “In the beginning, each of us will invest $100,000 to $1 million…and that will move the needle for some of these early-stage companies. Hopefully, we can find more opportunities to double down on these founders.”
The partnership enhances Accel’s Atoms X program for early-stage founders, launched in July to support what the firm describes as “leap tech” startups, those addressing significant, systems-level challenges.
He noted that startups focused on solutions for large populations often struggle to secure sufficient early funding due to lengthy development timelines and the potential for substantial dilution before achieving notable progress.
“We feel now the time is right for the Indian startup ecosystem to move from adapting global businesses to creating Indian models that help India leapfrog its journey in becoming a developed country,” Agarwal said, as reported by Tech Crunch.
Historically, Prosus has focused on investing in late-stage companies worldwide. The company considers Swiggy, Meesho, and PayU to be significant investments in India.
Although Prosus has pledged to match Accel’s investment in this collaboration, Sharma suggested that it does not intend to acquire an equity stake similar to Accel’s.
According to ET, Ashutosh Sharma, head of India ecosystem at Prosus, said, “We did three late-stage deals last year in India: Rapido, Mintifi and Vastu Housing, but we did seven early-stage deals. So, it’s not new for us… but the lens that Prosus has taken for early-stage investing is that these companies have to be extremely exciting. So, we won’t do 40-50 investments a year but more in the range of five to six.”
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