Accel, Prosus to Co-Invest in Indian Science Startups

• Accel–Prosus Alliance, partnering to co-invest up to $2 million each in early-stage Indian deep-tech startups
• Targeting long-cycle ventures in AI, robotics, and advanced manufacturing
• Leveraging India’s scale and innovation to build global deep-tech leaders

Investment firm Accel began a partnership with international investor group Prosus to make co-investments in early-stage Indian startups focused on developing transformational technologies including robotics, advanced manufacturing and artificial intelligence (AI).

Under Accel's Atoms X programme, they will make matching investments of up to $2 million each into so-called "LeapTech" companies, which have longer development horizons than conventional software companies.

The Accel Prosus partnership is set to boost Indian science startups through increased deep tech investment India, strengthening startup funding opportunities as Prosus India and Accel Ventures India collaborate to support breakthrough innovation.

Pratik Agarwal, Partner, Accel said, "Technology is one way to achieve breakthroughs, but so are product- and business-model innovations. We want to back ideas that create a step-function transformation in the market — in cost, access, or performance".

This is the first investment partnership of its kind for Prosus globally. Accel and Prosus aim to invest in a company that is potentially taking 10-15 years before scaling but could lead their industry through deep technological advancements.

Ashutosh Sharma, Head of India ecosystem, Prosus stated, "This is Prosus’ first collaboration of its kind globally. Accel is a natural partner to join hands with. We see extraordinary potential in LeapTech founders building from science and engineering first principles to solve global problems".

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According to Accel's Prashanth Prakash and Prosus Sachin Sharma, India has a unique opportunity to incubate LeapTech, given its huge population, scarce resources and frugal innovation.

The partnership will target areas like advanced manufacturing, AI-based automation, and energy transition, areas of innovation where India has already shown a potential to be strong global players, as evidenced by Jio's telecom revolution and the Unified Payments Interface.

Each firm will invest directly from its own fund, but they can choose to co-invest again when they go on to other rounds as separate funds.

Accel and Prosus (along with a number of other notable VC firms) have co-invested in a broadband infrastructure platform called Wiom. Accel and others have invested in a kitchen robotics startup called Posha, and in a flying taxi company called Sarla Aviation.

Accel's Atoms incubator has supported more than forty companies; 30% of the firms in the Atoms incubator have gone on to receive follow-on funding.

Even though it will take years of manifold progress, Accel and Prosus see deep-tech companies as bamboo startups, because while they take time to grow, they can then grow quickly and profoundly once they hit the substantively established phase.