According to reports, venture-capital firm Accel is partnering investment group Prosus to co-invest in early-stage Indian startups focused on breakthrough technologies including robotics, advanced manufacturing, and artificial-intelligence (AI) applications.

The companies will invest up to $2 million each via Accel’s Atoms X program, which focuses on businesses needing longer development cycles than conventional software startups. These are referred to as LeapTech firms.

"Technological advancements are one method to attain breakthroughs, but innovations in products and business models are also effective. We aim to support concepts that bring about a significant transformation in the market — whether in cost, access, or performance,” states Pratik Agarwal, partner at Accel.

The partnership signifies Prosus’ inaugural global co-investment alliance of this nature, as both aim to gain access to firms that may require 10-15 years to mature but could lead their sectors through technological differentiation.

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"This marks Prosus' inaugural partnership of this nature worldwide. Axel is an ideal collaborator to partner with,” stated Ashutosh Sharma, leader of the India ecosystem at Prosus.

"We recognize remarkable promise in LeapTech entrepreneurs who leverage scientific and engineering fundamentals to address worldwide challenges," says Ashutosh.

Agarwal mentioned that, in contrast to the United States or China, India's situation is distinctive, possessing the largest population globally, constrained resources, and a resourceful mentality.

“To achieve developed nation status, we need to show innovations that provide affordable quality on a large scale,” he stated.

The investment companies stated that whether it was Jio, Unified Payments Interface, or the growth of quick commerce, LeapTech innovation demonstrated what could be achieved when distinctive technology combined with execution on an Indian scale. This is also relevant in areas like advanced manufacturing, energy transition, and automation powered by AI.

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The companies will invest directly from their respective funds while also co-investing in every LeapTech project. The initial investment from each fund could amount to $1 million. For subsequent rounds, every fund has its specific mandate.

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"Through this collaboration, we can jointly assist founders from initial concepts to advanced stages," stated Sharma.