Accel Partners, Erasmic Venture team up for India

The Palo Alto firm has tied up with Indian venture firm Erasmic, and plans to raise a $60 million venture capital fund for investing in multiple sectors in the country.

Accel Partners, an early stage technology investor, and Erasmic Venture Fund, an India-focused venture capital firm, have united to launch Accel India Venture Fund. Accel India will focus on early stage investing in India.

The fund will be managed by the partners of Erasmic Venture who are joining Accel India as partners. They are Subrata Mitra, Prashanth Prakash, Mahendran Balachandran and Gagan Kumar.

Peter Wagner, partner at Accel Partners, said: “Accel sees a tremendous need and opportunity for an active, highly-engaged approach to early-stage investing in India.”

Prakash, a partner at Erasmic Venture and now Accel India, said that the combination of Accel’s platform and Erasmic’s team’s involvement in the local entrepreneurial process would benefit the firm in its activities.

Accel India Venture Fund’s activities will include seed-stage investing and investments in existing companies that are growing their operations. It will invest across multiple sectors including technology, technology-enabled services, media, internet, mobile, life sciences, and consumer products and services.

The firm said that its India fund will generally seek to be the first investor in a new venture. As its portfolio companies develop, it will be open to investments from other firms in future fundraising rounds.

Prakash told Indian blog VCCircle in an interview that Erasmic Venture Fund will now be referred to as Accel India Venture Fund I and that Erasmic’s existing portfolio companies will become a part of Accel portfolio companies around the world.

He said that Accel India will be raising Accel India Venture Fund II, a $60 million (€38.4 million) fund, later this year.

Established in 1983, Accel Partners makes venture investments in the US, China, Israel and Europe. The firm has more than $4 billion in assets under management.

Accel India could not be reached for comment.