In a landmark collaboration aimed at reshaping India’s innovation landscape, global investment giants Accel and Prosus, have joined forces to fund early-stage Indian startups right from their inception.

The partnership, unveiled on Monday, seeks to empower visionary founders developing large-scale, transformative solutions that can serve India’s growing population and beyond.

The collaboration marks Prosus’s first-ever entry into formation-stage investing, signaling a new chapter for the firm traditionally known for its late-stage global investments.

Both Prosus and Accel will co-invest in startups from their earliest days, focusing on ventures addressing deep-rooted challenges across sectors such as automation, energy transition, internet services, and manufacturing.

With over 1.4 billion people and a rapidly expanding digital economy, India stands at the crossroads of unprecedented growth.

Home to more than a billion internet users and 700 million smartphone owners, the country has become the world’s second-largest smartphone market after China.

Government-backed digital platforms like UPI and Aadhaar have laid the groundwork for a thriving innovation ecosystem, enabling startups to scale quickly.

Yet, much of India’s entrepreneurial focus has long revolved around replicating global models, rather than building homegrown solutions. The Accel–Prosus partnership seeks to change that narrative.

The initiative expands Accel’s Atoms X program, launched in July to back what it calls “leap tech” startups — companies tackling systemic, large-scale issues with a vision to accelerate India’s journey toward becoming a developed nation. to move from adapting global b

Under the new alliance, Prosus will match Accel’s investments in each selected startup, with initial funding ranging from $100,000 to $1 million, and potential for higher future allocations.

Prosus, an Amsterdam-headquartered firm with key Indian investments in Swiggy, Meesho, and PayU, emphasized that early equity stake is not its primary goal.

The partnership also deepens both firms’ presence in India, having recently co-invested in AI tutoring platform Arivihan and affordable internet provider Wiom.

Sharma added that the ongoing AI revolution presents a global inflection point, positioning nations like India to capitalize on emerging opportunities.

This strategic alliance arrives amid global geopolitical shifts that are redefining investment flows, technology access, and supply chains.

For many investors, India’s robust domestic market, digital infrastructure, and technical talent pool make it a compelling long-term destination for capital deployment.

Accel’s Atoms program has already funded over 40 startups, with more than 30% securing follow-on rounds from external investors.

Despite a 25% year-on-year decline in overall VC funding in the first half of 2025, global confidence in India’s startup ecosystem remains strong.

In September, several leading U.S. and Indian venture capital firms — including Accel, Blume Ventures, Celesta Capital, and Premji Invest — announced a $1 billion coalition to back deep tech ventures.

The Accel–Prosus alliance reinforces this momentum, underscoring a shared belief that India’s next wave of innovation will not just adapt to the world — it will define it.

Source: Techcrunch