Dutch tech investor Prosus and US-based venture capital firm Accel have joined hands to invest in early-stage Indian startups working in advanced manufacturing, clean energy, and AI-powered automation.
Through this partnership, Prosus will match Accel’s investments in startups selected under Accel’s early-stage founder program, Atoms X. Together, they plan to invest between $200,000 and $2 million in each startup, said Accel partner Pratik Agarwal.
“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,” he added.
He also added that the program will support companies developing new technologies or building innovative business models.
Accel’s Atoms X program targets early-stage startups with the potential to serve large markets. For Prosus, which usually invests in growth or late-stage companies, this partnership offers greater access to India’s early-stage startup ecosystem.
“It’s an addition to what we already do on the early stage. At Prosus, we always look to back companies that can have an impact across millions of people in emerging markets. There is a section of entrepreneurs who want to take very audacious bets but they find it hard to reach a place where they get interesting for Prosus,” said Ashutosh Sharma, head of India ecosystem at Prosus.
“This is Prosus’ first collaboration of its kind globally. Accel is a natural partner to join hands with,” Sharma 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.”
Prosus and Accel have worked together before, investing in several well-known Indian startups such as Swiggy, Bluestone, and Urban Company — all of which are now publicly listed. They also backed Captain Fresh, a company preparing for its IPO.
Recently, the two firms have invested in new ventures, including the edtech startup Arivihan, former Nazara Technologies CEO Manish Agarwal’s decentralized gaming platform KGeN, and developer productivity startup CodeKarma.
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