Accel
Partners, the venture capital firm that has backed the likes of
Facebook and Flipkart, is launching a $305 million India-focused fund to
capitalise on the country’s favourable conditions for start-ups.
The
investment is almost double the size of Accel’s last such fund —
launched in 2011 — and will target technology businesses in the
consumer, enterprise software, mobile and healthcare sectors, the
Silicon Valley-based firm said on Tuesday.
A
rising number of smartphone users, cheaper Internet and a vast middle
class have turned India into one of the hottest markets for investors
such as Accel, Singaporean wealth fund Temasek Holdings and Japan’s
SoftBank Corp, fuelling growth of technology start-ups including
Flipkart, Snapdeal and Ola.
Investors
pumped $4.5 billion into the Indian Internet space in the 13 months to
February, Morgan Stanley said in a report, while sources have told
Reuters of heightened competition among investors as they scout for
India’s next billion-dollar business.
Industry
analysts value Flipkart at about $11 billion and Ola at around $1
billion. Snapdeal says it is worth slightly more than $5 billion.
“While
there is more competition (investors) and more start-ups, some of the
better companies have begun to accelerate a lot faster and get a lot
bigger. So, yes, we do expect to help build many large companies,”
Accel’s Subrata Mitra told Reuters.
Posted by : Gizmeon
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