Accel and Prosus Invest $1M Each in LeapTech Startups

Venture capital firm Accel and the Europe-based technology company Prosus have announced a partnership to co-invest $1 million each in early-stage startups participating in Accel’s accelerator programme, Atoms X. This initiative aims to support innovative companies focused on LeapTech, a sector that integrates engineering advancements with scientific breakthroughs to create scalable solutions in the Indian market.

Launched earlier in 2023, Atoms X is a strategic extension of Accel’s pre-seed scaling programme. The collaboration is designed to amplify the LeapTech ecosystem, according to Pratik Agarwal, Partner at Accel. He articulated the significance of this partnership, stating, “This is not merely two prominent funds co-investing in a deal; it is a pivotal step in expanding the LeapTech ecosystem through our Atoms X programme.”

Agarwal emphasized the growing intersection of deep technology and entrepreneurship, noting that founders are not just iterating on existing ideas but are actively inventing new solutions. He added, “Together, Accel and Prosus will help them scale faster with the right capital, mentorship, and conviction.”

The partnership comes at a time when the demand for innovative tech solutions is surging in India. Accel has previously backed 40 companies through its Atoms programme, with over 30% of these firms successfully securing follow-on funding from external investors. This track record underscores the potential for growth in the Indian startup ecosystem.

Prosus, known for investing in notable companies like ride-hailing service Rapido and food delivery giant Swiggy, remains optimistic about opportunities in India, especially following Swiggy’s IPO last year. The Dutch investment company has also made early-stage investments in startups leveraging artificial intelligence, indicating a strategic pivot from its previous approach of larger investments.

“This co-investment strategy signals a shift in our investment philosophy,” stated Ashutosh Sharma, Head of India Ecosystem at Prosus. He highlighted the unique nature of this collaboration, noting, “This is Prosus’s 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.”

The collaboration between Accel and Prosus aims to leverage Accel’s expertise in early-stage investment alongside Prosus’ capabilities in scaling ideas into successful global companies. By providing patient capital and a long-term commitment, this initiative seeks to foster innovation that addresses pressing challenges both in India and beyond.

As the partnership unfolds, it is expected to enhance the support structures available to emerging entrepreneurs, thereby contributing to the growth of the LeapTech landscape in India.