Gurugram-based venture capital firm Elevation Capital, best known for its early-stage bets in India’s startup ecosystem, has launched a new USD 400 million (~INR 3,516 crore) fund dedicated to late-stage investments. The vehicle, christened Elevation Holdings, marks the firm’s formal entry into the pre-IPO investment space, a move driven by the growing maturity and depth of India’s technology-led businesses.
A Strategic Shift Beyond Early-Stage Bets
Elevation Capital, formerly SAIF Partners, has long been associated with seed to Series A investments. With its USD 670 million (~INR 5,906 crore) Fund VIII still actively backing early-stage startups such as Jeh Aerospace and BlissClub, the launch of Elevation Holdings represents an evolution rather than a departure from its core strategy.
“This is not a change in our DNA but an extension of our conviction,” said Mridul Arora, Partner at Elevation Capital. “We believe there are now a large number of category-leading Indian companies that are either profitable or very close to profitability. Many are run by young, ambitious founders with decades ahead of them. Elevation Holdings is designed to support their journey to IPO and beyond.”
Focus on IPO-Bound Companies
The late-stage fund will target 10 to 15 companies that are not more than three years away from going public. It will write cheques ranging from USD 20 million to USD 50 million per deal, with the flexibility to invest through primary or secondary transactions, including employee stock option (ESOP) buybacks.
Notably, the fund is structured to be a long-term partner, with holding horizons of 10–15 years, well past the initial public offering. “At that stage, many founders find themselves dealing mostly with hedge funds and mutual funds that trade in and out. Our goal is to be patient, non-intrusive partners with permanent capital,” Arora said.
Sectoral Bets and Early Moves
Elevation Holdings will primarily focus on technology-driven companies in the consumer and financial services sectors, where the firm already has a strong track record. Its current portfolio includes Meesho, Acko, Wakefit, Urban Company, and Aye Finance — several of which are preparing for public listings.
The fund has already made its first investment in used-car marketplace Spinny, expanding the company’s Series F round to USD 170 million at a valuation of USD 1.5–1.7 billion. Elevation Capital has also re-entered the cap table of Urban Company, purchasing shares in a pre-IPO secondary round alongside SBI Mutual Fund, Prosus, and Permira.
Track Record of Exits and Market Conviction
Elevation’s move into late-stage investing comes on the back of successful exits in recent years. The firm recently sold its stake in ixigo’s parent company, Le Travenues Technology, following its IPO, and has also recorded exits from Swiggy and FirstCry.
Co-Managing Partner Mukul Arora emphasized that India’s economic fundamentals make this the right time for such a strategy. “India still has decades of growth ahead, and some of our new-age companies will compound value like HDFC, Titan, or Asian Paints have done over the years. The opportunity to earn outsized returns remains compelling.”
A Sign of Maturing Markets
Industry watchers note that Elevation’s approach is unusual for a seed-stage investor, as few firms return to the cap table of companies they first backed a decade earlier. Managing Partner Ravi Adusumalli, who has served on Urban Company’s board since 2015, will lead Elevation Holdings as General Partner.
While hybrid models of investing often face structural challenges in terms of fees, liquidity, and carry models, Elevation Capital believes its venture-first ethos and long-term orientation give it a unique edge. Importantly, a large portion of the firm’s limited partners (LPs) from earlier funds have also backed this late-stage vehicle, signaling strong investor confidence.
Positioning for the Next Wave of IPOs
The timing of Elevation’s new fund coincides with a surge in IPO activity among India’s technology startups. This year alone, companies such as Ather Energy, BlueStone, and Smartworks have listed, while nearly 40 others — including Groww, PhysicsWallah, and Pine Labs — are preparing to enter public markets.
Elevation Capital’s latest vehicle positions it to play a significant role in this wave. As the firm put it in its announcement: “We’ve seen how generational companies are built, and we know the journey doesn’t end at IPO — in many ways, that’s just the beginning.”
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