Accel partners with Prosus to co-invest in Indian science-led startups

Firms will match investments up to $2 million in founders building breakthrough technologies from semiconductors to robotics

Venture-capital firm Accel is partnering investment group Prosus to co-invest in early-stage Indian startups focused on breakthrough technologies including robotics, advanced manufacturing, and artificial-intelligence (AI) applications. 

 

The firms will match investment up to $2 million each through Accel’s Atoms X programme, which targets businesses that require development cycles longer than traditional software startups do. They call these LeapTech companies.

 

“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,” Pratik Agarwal, partner, Accel, told Business Standard.

 

The arrangement marks Prosus’ first global co-investment alliance of this type, as both seek exposure to companies that may take 10-15 years to mature but could dominate categories through technical differentiation. 

 

“This is Prosus’ first collaboration of its kind globally. Accel is a natural partner to join hands with,” said  Ashutosh Sharma, head of India ecosystem, Prosus. 

 

“We see extraordinary potential in LeapTech founders building from science and engineering first principles to solve global problems.”

 

Agarwal said, unlike the United States or China, India’s context was unique, having the world’s largest population, limited resources, and a frugal mindset.

 

“To become a developed nation, we must demonstrate innovations that create affordable excellence at population scale,” he said.

 

The investment firms said whether it was Jio, Unified Payments Interface, or the rise of quick commerce, LeapTech innovation had shown what was possible when unique technology met Indian-scale execution. This also applies across sectors such as advanced manufacturing, energy transition, and AI-driven automation.

 

The firms will invest directly from their respective funds but co-invest in every LeapTech venture. Initial investment can reach $1 million from each fund. For follow-on rounds, each fund has its own mandate.

 

“With this partnership, we can collectively support founders from early ideas to late stage,” said Sharma.

 

Accel and Prosus previously backed Wiom, an internet-infrastructure platform focused on affordable broadband. Other Accel investment includes that in Posha, a kitchen robotics startup, and Sarla Aviation, which is building flying taxis.

 

Wiom runs a tech-driven, asset-light platform that partners local internet providers to expand broadband access in parts of India underserved by traditional networks.

 

Posha makes a countertop robot that uses AI and computer vision to cook meals, follow recipes, and adjust ingredients and heat with little human input.

 

“Sarla Aviation got access to testing facilities, research & development centres, and policymakers through our networks — access they could never get alone,” said Agarwal.

 

He said these startups needed capital, credibility, and connections much earlier in their lifecycle.

 

Globally, startups in this segment in 2024 attracted over $80 billion in venture funding, with India contributing 6-8 per cent of deal volumes, according to PitchBook and the Bain data.

 

Accel has backed over 40 companies through its Atoms programme, with 30 per cent securing followon funding from external investors.

 

Deep-tech bets can take 10-15 years to mature, but Agarwal said these companies grew like bamboo — underground for years before shooting up rapidly.

 

“Once they take off, they scale up disproportionately and often dominate their categories because they’re unique,” said Agarwal. 

 

Sharma said the alliance aimed to deliver better risk-adjusted returns.

 

He said he wanted to collaborate with other venture-capital firms for it.  “Everyone is open to joining in future rounds. But for the first round, it’ll just be the two of us,” said Sharma.