Accel’s Pratik Agarwal says it is time for Indian startups to lead global innovation, not just catch up

Global venture capital firm Accel’s Pratik Agarwal believes India’s startup ecosystem has reached an inflection point where founders can now build world-leading companies rather than follow global trends.

Speaking to CNBC-TV18 after announcing a strategic alliance with Prosus to jointly invest in pioneering Indian startups, Agarwal said the ecosystem is ready to “change gears” and multiply its ambitions.

“From a standing start, we’ve created institutions that power a large part of the average Indian’s lifestyle—from e-commerce to food delivery to consumer goods,” Agarwal said. “That has given a lot of confidence to the ecosystem that Indian startups can build things of durable value and become an important part of customers’ lives.”

Accel and global technology investor Prosus on Monday announced a global-first partnership under the Atoms X programme, aimed at co-investing in early-stage LeapTech startups in India. The alliance seeks to support founders building transformative ideas with both early conviction and long-term capital. Under the arrangement, Prosus will match Accel’s investments in each selected startup, ensuring a steady funding pathway from seed to scale.

Explaining why now is the right time for such a push, Agarwal said India’s startup ecosystem had matured over the past two decades. “Previously, even getting something off the ground was a challenge. Now, the ecosystem is limited by ideas and novel insights. You can assume that you’ll find the right capital and talent to get things going,” he said.

Ashutosh Sharma, Head of Investments for India and Southeast Asia at Prosus, said the partnership combines Accel’s deep India experience with Prosus’ global reach. “Accel is amazing at taking companies from zero to one, one to ten, and ten to a hundred. Prosus comes in slightly later and can help companies grow from 100 to 1,000 and beyond. So, for audacious ideas, we can collectively help them grow from zero to 10, 100, and 1,000,” Sharma said.

The new partnership will focus on LeapTech ventures—startups creating population-scale impact through breakthroughs in technology, product, or business model. “LeapTech is about transformation through a breakthrough in technology, business model, or product,” Agarwal explained. “The criteria for a LeapTech company are: does it impact hundreds of millions of lives? And does it create a step-function transformation, not just incremental change?”

Initial investments through Atoms X will range from $200,000 to $1 million from each side, giving startups access to up to $2 million in seed capital. As companies scale, both investors are prepared to continue supporting them long-term.

Sharma said the partnership reflects the growing maturity of India’s innovation landscape. “India’s startup ecosystem has matured, but it’s still a baby. The US ecosystem is 60 years old, China’s is 40, and India’s is maybe 20 years old at best. Now we’re seeing brand-new ideas—solutions to India-specific challenges with India-specific models,” he said.

Agarwal summed up the vision behind the collaboration succinctly: “So far, India was catching up to global progress in the startup space. Now we feel it is time for India to lead.”

Watch accompanying video for entire discussion.Read about our editorial guidelines and ethics policy