Accel looks beyond metros

The VC firm will back startups that serve consumers in India's tier-II markets and beyond, after raising $650 mn

- Priyamvada C & Ranjani Raghavan

Early-stage venture capital firm Accel will sharpen its focus on startups catering to India's tier-II markets and beyond, underscoring a gradual shift in its investment thesis after it raised $650 million for its eighth fund.

The new fund will back native Indian startups that cater to consumers beyond the metros, and aspirational brands that seek to capitalize on the rising discretionary spending by Gen Z.

Accel will also bet on artificial intelligence (AI), fintech and manufacturing firms focused on domestic and global demand.