Elevation Capital, one of India’s leading venture capital firms, has announced the launch of a $400 million late-stage fund named Elevation Holdings. This strategic move marks a major shift from its traditional early-stage investment approach to long-term bets on companies that are gearing up for public listings.
A Strategic Shift to Late-Stage Funding
According to an Economic Times report, Elevation Holdings will invest in 10–15 companies, with cheque sizes ranging between $20 million and $50 million. The fund will maintain a strong focus on consumer and financial services segments, with a significant emphasis on technology-driven businesses.
Speaking about the fund, Mridul Arora, Partner at Elevation Capital, said:
“Our horizons for investments are much longer and we will hold long enough to be considered permanent holders of the stock. We also have the flexibility in terms of having a non-intrusive check size for a company of that scale.”
How Elevation Holdings Differs from Fund VIII
The newly launched fund will operate alongside Fund VIII, a $670 million early-stage vehicle that typically invests $2–5 million in young startups. While Fund VIII focuses on early-stage ventures, Elevation Holdings is designed to support companies within three years of going public, particularly those already profitable or with a clear roadmap to profitability.
The first investment from this new fund has already been made in Spinny, one of India’s leading used-car marketplaces.
Track Record and Previous Investments
Elevation Capital has built a strong track record with investments in both listed companies and IPO-bound startups, including:
- Listed Companies: FirstCry, Ixigo, MakeMyTrip, Paytm, Swiggy
- IPO-Bound Startups: Meesho, Urban Company
Additionally, Elevation recently made partial exits from Ixigo, further strengthening its reputation for delivering solid returns to investors.
What This Means for India’s Startup Ecosystem
The launch of Elevation Holdings underscores the growing maturity of the Indian startup ecosystem and the increasing confidence in public market value creation. With a robust portfolio and a strategic late-stage fund, Elevation Capital is well-positioned to fuel the next wave of IPO-ready companies in India.
FAQs
1. What is Elevation Holdings?
Elevation Holdings is a $400 million late-stage investment fund launched by Elevation Capital to support IPO-ready startups in India.
2. How much will Elevation Holdings invest in each company?
The fund plans to invest between $20 million and $50 million in 10–15 companies nearing IPO.
3. Which sectors will the new fund target?
Elevation Holdings will primarily focus on consumer services, financial services, and technology-driven businesses.
4. How is this fund different from Elevation Capital’s Fund VIII?
While Fund VIII invests in early-stage startups with cheque sizes of $2–5 million, Elevation Holdings is designed for late-stage, IPO-bound companies within three years of going public.
5. Has Elevation Holdings made any investments yet?
Yes, its first investment has been in Spinny, a leading used-car marketplace in India.
Disclaimer:
This article is based on publicly available information and official press statements. Untoldyou does not offer financial, investment, or business advice. Readers are advised to conduct their own research and verify all details independently before making any financial or business decisions.
