Accel Bets on AI Startups in India Accelerator Program Revamp

Lights illuminate power connector cables inside a 'mining rig' computer, used to mine the Electroneum cryptocurrency, in Budapest, Hungary, on Wednesday, Jan. 31, 2018. Cryptocurrencies are not living up to their comparisons with gold as a store of value, tumbling Monday as an equities sell-off in Asia extended the biggest rout in global stocks in two years. Photographer: Akos Stiller/Bloomberg

(Bloomberg) -- Venture capital firm Accel is refocusing its India accelerator program on artificial intelligence startups, seeking to identify promising companies in the fast-growing field.

The firm will choose as many as half a dozen early stage startups to fund and mentor, starting this month, it said Wednesday in a statement. It'll also target companies that use technology to make conventional industrial processes more efficient.

Investors the world over are rushing to back AI companies as products such as ChatGPT are quickly gaining popularity. Accel is betting India's large talent pool and technological expertise will make it fertile ground for AI innovation.

“We researched possible themes that'll matter in the next decade,” said Barath Shankar Subramanian, an India-based partner at the venture firm. “We are looking at companies that can build AI solutions that are globally relevant.”

Accel and its Silicon Valley peer Sequoia are among the largest investors in early-stage startups in India. Each has invested in dozens of local companies, including Walmart Inc.-backed retailer Flipkart and food and grocery delivery startup Swiggy. A $650 million fund announced last year is among Accel's investment vehicles targeting the region.

“The rise of AI is as pivotal as the inventions of electricity, the internet and the cloud,” the firm said in its statement.

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