Elevation Capital Launches $400M Fund to Back IPO-Bound Indian Startups

August 29, 2025

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Why in the News?

Elevation Capital, one of India’s leading venture capital firms behind successes like Paytm, Swiggy, Meesho, and Urban Company, has announced the launch of a $400 million late-stage fund, Elevation Holdings, to back startups on the cusp of going public. This marks a deliberate shift from its early-stage focus to long-term investment strategies aimed at unlocking public market value.

Elevation Holdings plans to invest in 10–15 technology-driven companies, especially in the consumer and financial services sectors, with each investment ranging between $20 million and $50 million. These investments are meant to be long-horizon, often lasting 10 to 15 years or beyond, positioning Elevation as a permanent stakeholder rather than a short-term investor

A Distinct Approach

Partner Mridul Arora emphasized their differentiated approach: unlike many growth- or crossover-style vehicles, Elevation Holdings brings a venture capital DNA to late-stage investing. Rather than focusing on immediate returns, the fund prioritizes patient capital and strategic partnership, offering tailored support during founders’ transition to public markets

The new vehicle will operate in parallel with Elevation’s existing $670 million early-stage Fund VIII, which continues to back seed and Series A startups with smaller ticket sizes of $2–5 million.

Elevation Holdings has already made its inaugural investment in Spinny, a used-car marketplace, and remains open to investing in both existing portfolio companies and new opportunities

Mukul Arora, co-managing partner of Elevation, expressed strong confidence in India’s tech ecosystem, drawing parallels with legacy Indian champions like HDFC Bank, Titan, and Asian Paints. He argued that certain tech startups are now demonstrating similar potential for compounding value over decades.

Targeting companies that are no more than three years away from listing and either profitable or with a clear path to profitability, the fund is designed to power the final stretch toward IPO readiness.

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