Accel Partners has shelved its $400 mn India fund due to poor market conditions and and increased competition among private equity investors in the country.
As per ToI, Accel Partners had roped in prominent fund managers from biggies like DE Shaw, Apax Partners and Goldman Sachs to lead the India growth fund. A senior Accel Partners official confirmed rolling back plans for a larger fund in India. Accel, however, will continue making early stage investments in “category defining” start-up firms in the country.
Accel Partners earlier acquired Erasmic Ventures (in 2008) and closed $60mn in Nov, 2008. The fund has invested in Flipkart, Myntra, Exclusively, enStage, Commonfloor, LetsBuy etc.
We have reached out to Accel for confirmation and we will update the article as soon as we hear back from Accel India.