Accel closes $155m third India fund

India's underserved early stage markets underpin Accel India III close on $155m, more than twice the size of its predecessor.

Global venture capital firm Accel Partners has closed its third India fund on $155 million for seed and early stage investments.

The Accel India III will focus on opportunities in internet services, digital media, software as a service (SaaS) and enterprise technologies, mobile, healthcare and education, according to a statement.

“While traditional venture capital and growth equity have been increasingly drawn to India over the past several years, the true seed and early stage markets are still under-served, attracting relatively smaller amounts of capital,” Subrata Mitra, partner at Accel, said in the statement.

He added that he has seen “a significant increase in entrepreneurial activity in the last few years” particularly in the internet space.

Accel closed its second India fund on $63.85 million in 2008 and Accel India I on $10 million in 2007, according to sister data provider Private Equity Connect.

Led by Mitra, Mahendran Balachandran, Shekhar Kirani and Prashanth Prakash, Accel has 11 investment professionals based in India. The firm currently has 34 portfolio companies in the country.