India Poised to Become Global IP-led Innovation Hub, Says Accel’s Prashanth Prakash
VC firm to deploy $650 million fund across AI, tech-led industrialisation, and Bharat-focused start-ups
India is well-positioned to emerge as a global hub for IP-led innovation and high-value manufacturing, especially in strategic sectors like defence, electric vehicles (EVs), aerospace, and energy, according to Prashanth Prakash, Partner at venture capital firm Accel.

Speaking to PTI, Prakash emphasized the “limitless headroom for entrepreneurs” in the country, as Accel sets its sights on backing 20-25 promising start-ups this year through its recently announced $650 million fund. The fund will be deployed over the next two to three years, with a sharp focus on AI, tech-driven industrialisation, and “Bharat” — a term referring to start-ups catering to the top 30% of households in India’s tier 2 and 3 regions.

“If you’re a start-up entrepreneur, there’s no better time to begin. The number of sectors that start-ups are impacting is now multi-dimensional and multi-sectoral,” said Prakash. He highlighted how India’s talent pool, agility of start-ups, and ability to integrate with global supply chains present an unmatched opportunity for innovation and value creation.

Accel, which boasts a 16-year legacy in India and Southeast Asia, has invested in marquee companies like Flipkart, Swiggy, Freshworks, BrowserStack, and Urban Company. In recent years, it has doubled down on AI and deep-tech, with over 27 AI-focused investments in the past two years alone.

The Padma Shri awardee also underscored India’s growing maturity in the start-up ecosystem, particularly in the post-COVID landscape. “Entrepreneurs and investors have found the right module for building successful start-ups tailored to India’s unique needs,” he said.

Highlighting AI and deep-tech as key disruptors, Prakash pointed to a new era of “AI for industrialisation,” combining cutting-edge tech with physical manufacturing to enable import substitution and plug into global supply chains. He urged Indian founders to take advantage of initiatives like iDEX (Innovations for Defence Excellence) to innovate in defence and other strategic sectors.

“AI, space tech, EV components, and sustainable industrial products — these are areas where Indian entrepreneurs can lead globally,” he noted. He also challenged the notion that China will remain the sole supplier of EV components, saying Indian start-ups have the capability to build competitive alternatives.

Accel’s Bharat-focused approach, along with programmes like SeedToScale and Accel Atoms, continues to democratize access to knowledge and resources for founders. SeedToScale offers open-source insights from industry leaders, while Accel Atoms, now in its fourth edition, has supported 36 early-stage start-ups that have raised over $200 million collectively.

Prakash’s optimism reflects a broader sentiment that India’s start-up movement is no longer confined to urban centers but is becoming a pan-India phenomenon. “The next decade holds even greater promise,” he said, “with start-ups set to play a key role in nation-building and innovation-driven growth.”