Reputable investors Accel and Prosus have introduced a new investment collaboration aimed at supporting Indian startups from the outset, focusing on founders creating large-scale solutions intended to benefit the masses in the South Asian country.

Revealed on Monday, this partnership signifies the first instance of Prosus investing at the inception stage. The two firms will jointly invest from the earliest phases of a startup, concentrating on companies addressing fundamental challenges across various sectors including automation, energy transition, internet services, and manufacturing.

India, the world’s most populous nation with over 1.4 billion residents, is experiencing fast growth in its digital economy. The country boasts more than a billion internet users and over 700 million smartphone users, positioning it as the second-largest smartphone market globally, following China. Platforms backed by the Indian government such as the Unified Payments Interface (UPI) and Aadhaar have established a digital framework that allows startups to develop and expand services rapidly. However, much of India’s startup activity thus far has centered on modifying global business models, with fewer enterprises addressing significant domestic issues. The Accel–Prosus partnership aims to rectify this.

This collaboration enhances Accel’s early-stage founder initiative, Atoms X, which was launched in July to support what the firm terms “leap tech” startups — businesses focused on large-scale, systems-driven challenges.

“We believe the time has come for the Indian startup ecosystem to transition from adapting global models to establishing Indian frameworks that assist India in advancing its journey towards becoming a developed nation,” stated Pratik Agarwal, a partner at Accel, in an interview.

He mentioned that startups pursuing population-scale solutions frequently find it challenging to secure adequate initial funding, considering their extended development timelines and the risk of significant dilution before achieving substantial traction.

“We hope to provide them with much more early capital at the right moment so they can make significant strides without experiencing numerous rounds of false starts before they advance,” he expressed to TechCrunch.

Under this partnership, Prosus has pledged to match Accel’s investment in each startup, with initial contributions ranging from $100,000 to $1 million — a figure that could grow over time.

“We could easily continue to operate independently in this area, but considering the vast ambitions of these founders and the complexity of the issues they are addressing, it was logical for us to combine our resources,” remarked Ashutosh Sharma, head of the India ecosystem at Prosus.

Historically, Prosus has concentrated on late-stage investments globally. The Amsterdam-based firm includes Swiggy, Meesho, and PayU among its prominent investments in India.

While Prosus has committed to matching Accel’s investment in this alliance, Sharma indicated that it is not seeking a corresponding equity stake.

“For us, acquiring that equity in the initial round is not a priority at all,” he conveyed to TechCrunch. “If we can genuinely identify a Swiggy, a Meesho, an iFood, or a Tencent of tomorrow — today — that is already a significant success.”

This partnership also expands the activity scope of Accel and Prosus in India. Recently, both firms have co-invested in startups such as AI-driven tutoring platform Arivihan and affordable internet service provider Wiom.

“Due to the AI-led disruption occurring around us, certain countries will disproportionately benefit from this — while others may end up as disproportionate net, net losers,” Sharma stated. “Two nations that appear well-positioned to benefit from this are the U.S. and China. In this global order and narrative, what will be India’s role? And can India, as part of this ‘leap tech’ revolution, secure its rightful place, not just in AI but beyond it, is another aspiration we have with this initiative.”

This alliance emerges in the context of rising geopolitical strains that have disrupted capital movements, technology supply chains, and market accessibility — pushing global investors to reevaluate where to deploy capital safely and effectively. With a substantial domestic market, improving digital infrastructure, and a growing pool of technical talent, India is being regarded as a strategic focus in this scenario.

“India’s role in the global economy and geopolitical framework necessitates that it maps out and accelerates its journey like a self-sufficient, independent, developed nation,” Agarwal shared with TechCrunch.

Accel has already supported over 40 startups via its early-stage program, Atoms. More than 30% of these have successfully secured subsequent funding from external backers, with Accel itself leading over half of these funding rounds.

Venture capital funding in India dropped by 25% year-over-year to $4.8 billion in the first half of 2025, according to Tracxn, with late-stage investments falling 27% to $2.7 billion and early-stage funding decreasing by 16% to $1.6 billion.

Nonetheless, India continues to be a primary focus for global investors, driven by its vast population and increasing digital adoption. In September, eight U.S. and Indian VC and private equity firms — including Accel, Blume Ventures, Celesta Capital, and Premji Invest — formed a coalition to support deep tech startups with commitments exceeding $1 billion. The Accel–Prosus partnership represents the latest example of how global VCs maintain long-term investments in India.