India's consumers are moving away from owning appliances and furniture and towards renting them as a service. Prashanth Prakash, partner at venture capital firm Accel, said the shift is what convinced his firm to back RentoMojo eleven years ago. The company listed on the stock exchanges today at a premium, giving Accel a strong exit even as it retains a 12-13% stake and stays on as the company's largest institutional investor.
Prakash said Accel is not slowing down on consumer bets, pointing to an emerging category he calls AI plus consumer. But the bigger shift he sees coming is toward deep tech, science and engineering-led startups working on what he calls sovereign capabilities for India.
Accel is already backing deep tech companies across space, defence, robotics, new materials, and healthcare, and Prakash expects this category to drive the next wave of value creation the way consumer internet did over the past two decades. The firm's unlisted pipeline reflects that dual focus.
It includes B2B manufacturing platform Zetwerk, credit platform Moneyview, insurance company Acko, and B2B travel platform TravelPlus, alongside continued expansion of its consumer and deep tech bets. RentoMojo, which rents out appliances, furniture and vehicles, is one of several consumer-facing companies in Accel's portfolio alongside BlueStone and BookMyShow.
Prakash said the pandemic accelerated the shift his firm had bet on, as mobility needs and changing preferences among Gen Z consumers pushed more people toward accessing goods rather than owning them."We are the largest institutional investor," Prakash said, describing Accel's continued stake in the company even after the listing.
He added that the relationship with RentoMojo goes back eleven years, calling it a long-term partnership: "It's 11 years with the company, and we think it's still a few more years of a journey."Asked whether RentoMojo was the firm's best investment to date, Prakash said no, pointing to strong returns from Urban Company and BlueStone as well.
Accel also holds more than a 10% stake in BlueStone, the jewellery retailer that listed at a discount before rallying 40-50%. Prakash said Accel remains committed to BlueStone for the long term, citing strong demand for daily-wear jewellery. Prakash said Accel has stayed largely out of hospital services, where rivals such as Advent have been active, and instead focused on biotech and IP-driven investments.
One portfolio company, August, builds an AI assistant for doctors and clinicians. Prakash said India's healthcare services sector remains under-penetrated and has room for scale, even as some worry that rising private equity investment in hospitals could pressure care quality over time.
He pointed to companies like Narayana Hrudayalaya as examples of balancing profitability with affordability. Summing up where Accel sees the next wave of opportunity, Prakash said: "I think that is what entrepreneurs are focusing on, and we're seeing deep tech companies across space, defence, robotics, new types of materials, and healthcare."For the full interview, watch the accompanying videoCatch all the latest updates from the stock market here