Accel has closed Accel India V on $450 million in commitments, capital the firm will use to invest in seed and early-stage technology startups within the country's consumer, enterprise, B2B, SaaS, fintech and healthcare sectors. The vehicle is the largest yet in the firm's India series, bettering Accel India IV, which closed on $305 million last year.
That uptick in fund size flies in the face of an overall decrease in US venture interest in India. American investors have so far participated in just 238 financings of Indian startups in 2016, totaling $1.9 billion in capital invested, according to the PitchBook Platform—noticeable dips from the 330 transactions amassing nearly $6 billion last year.
Considering its experience in the region, perhaps Accel is an exception. The firm has been active in India for more than a decade, backing companies such as Flipkart—sometimes referred to as the country's Amazon. Last year's investment figures may also be propped up by the presence of tourist investors, such as hedge funds and asset managers, who were looking to get in on the growing Indian market. Or perhaps the drop in activity is more of a normalization.