Accel & Prosus Launch $2M Co-Investment Alliance to Fuel Indian Deep-Tech Startups

In a landmark partnership aimed at accelerating India’s deep-tech innovation, global venture capital firms Accel and Prosus have joined forces to co-invest in early-stage Indian startups through Accel’s Atoms X program. Announced on October 26, 2025, the alliance will provide combined investments of up to $2 million per startup ($1 million each from Accel and Prosus), targeting ventures in AI-driven automation, advanced manufacturing, energy transition, robotics, and other LeapTech domains.

This collaboration—Prosus’s first global early-stage co-investment alliance—aims to bridge the funding gap for deep-tech founders solving systemic challenges aligned with India’s Atmanirbhar Bharat and IndiaAI Mission.

Partnership Structure and Investment Focus

Deal Terms

• Investment Size: $200,000–$2 million per startup
• Funding Split: Accel and Prosus to contribute equally (50:50)
• Stage Focus: Pre-seed to Seed-stage deep-tech innovators

Target Sectors (LeapTech)

1. AI & Automation: Intelligent systems for industry and governance
2. Advanced Manufacturing: Smart factories and industrial IoT
3. Energy Transition: Green hydrogen, grid optimization, and storage
4. Robotics & Drones: From agricultural automation to urban air mobility
5. Semiconductors & Electronics: Chip design and embedded systems

Why This Partnership Matters for Indian Deep-Tech

Addressing Critical Gaps

• Early-Stage Risk: Deep-tech startups often struggle to secure early backing due to long R&D cycles and capital intensity.
• Mentorship & Scale: Combines Accel’s early-stage expertise with Prosus’s global scaling experience.

Strategic Synergies

• Track Record: Shared portfolio successes include Swiggy, Meesho, and PayU.
• Network Access: Startups gain exposure to Prosus’s global ecosystem and Accel’s founder community.

Statements from Leadership

Pratik Agarwal, Partner at Accel

“We’re backing founders inventing, not iterating—creating step-function transformations in cost, access, and performance. Atoms X is designed for mission-driven entrepreneurs building from the ground up.”

Representative from Prosus

“Our first early-stage co-investment alliance reflects our confidence in India’s potential to lead in deep-tech. We’re excited to support founders tackling challenges at a systems level.”

Noteworthy Startups in the Atoms X Pipeline

While the full portfolio is evolving, emerging innovators include:

• Sarla Aviation: Developing electric vertical take-off and landing (eVTOL) vehicles for urban mobility.
• Posha Robotics: Automating commercial kitchens with AI-powered robotics.
• Unnamed Cleantech Ventures: Focused on energy storage and grid resilience.

Market Context: India’s Deep-Tech Momentum

Funding Landscape

• Global Surge: Deep-tech investments exceeded $80 billion in 2024–2025.
• India’s Share: Accounts for 6–8% of global deep-tech funding, with rapid growth in AI, spacetech, and energy.

Policy Support

• IndiaAI Mission: $1 billion+ allocated for AI infrastructure and startups.
• National Deep Tech Startup Policy (NDTSP): Simplifying regulations and boosting R&D grants.

Benefits for Portfolio Startups

Capital and Beyond

• Mentorship: Hands-on guidance from Accel’s operational partners and Prosus’s global team.
• Global Access: Pathways to international markets and customers.
• Talent Network: Recruitment support for technical and leadership roles.

Sector-Specific Advantages

• Hardware Startups: Prototyping grants and manufacturing partnerships.
• AI Ventures: Cloud credits and compute infrastructure support.

Application and Selection Process

Eligibility Criteria

• Founder Profile: Technical experts with domain expertise.
• Innovation Bar: Solutions offering 10x improvements in efficiency, cost, or accessibility.
• India Focus: Startups headquartered in India, building for local and global impact.

Selection Timeline

• Rolling Applications: Accepted via Accel’s Atoms X portal.
• Pitch and Diligence: Multi-stage review by both Accel and Prosus teams.
• Onboarding: Selected startups receive funding, mentorship, and ecosystem access.

Impact on India’s Startup Ecosystem

Job Creation and Skill Development

• Direct Employment: Roles in R&D, engineering, and operations.
• Indirect Impact: Growth in ancillary sectors like semiconductor fabrication and advanced materials.

Global Competitiveness

• Export Potential: Indian deep-tech solutions addressing global challenges.
• Investor Confidence: Signaling effect for other global VCs to enter early-stage deep-tech.

Future Vision and Expansion Plans

Portfolio Goals

• 2026–2027: Back 15–20 startups across target sectors.
• 2028–2030: Cultivate 2–3 category leaders with global recognition.

Strategic Partnerships

• Research Institutions: Collaboration with IITs, IISc, and ISRO.
• Corporate Allies: Pilot deployments with manufacturing and energy majors.

Conclusion: A Leap Forward for Indian Deep-Tech

The Accel-Prosus alliance represents a watershed moment for India’s deep-tech ecosystem. By providing patient capital, mentorship, and global networks, it empowers founders to tackle audacious challenges—from decarbonizing industries to advancing AI-native infrastructure.

As India strides toward technological self-reliance, partnerships like these will play a pivotal role in nurturing homegrown innovation and positioning the country as a deep-tech leader on the global stage.