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Elevation Capital Launches New $400 Million Fund for Long-Term Investments

Elevation Capital is initiating a significant new fund of $400 million aimed at supporting companies over the long haul. This marks a departure from its traditional focus on early-stage startups, as the firm targets entities it believes will generate substantial value in public markets. According to a report by ET, the late-stage fund, named Elevation Holdings, plans to invest in 10 to 15 companies, with cheque sizes between $20 million and $50 million.

Investment Strategy of Elevation Holdings

The new fund will primarily concentrate on companies within the consumer and financial services sectors that have a technology emphasis. Mridul Arora, a partner at Elevation Capital, highlighted that the fund’s investment horizons are considerably longer. The intention is to maintain ownership long enough to be regarded as permanent stockholders. Additionally, the fund offers the flexibility of a non-intrusive cheque size suitable for firms of this magnitude.

Parallel Operations with Fund VIII

Elevation Holdings will function alongside Fund VIII, which is a $670 million early-stage initiative focused on investing amounts between $2 million and $5 million in budding startups. The new fund will consider companies that are within three years of going public and are either already profitable or have a clear path to become profitable.

Recent Investments and Industry Activity

Elevation Holdings has already made moves in the market by investing in Spinny, a used-car marketplace. Elevation Capital’s investment portfolio includes publicly listed companies such as FirstCry, Ixigo, MakeMyTrip, Paytm, and Swiggy, in addition to IPO-bound startups like Meesho and Urban Company. Recently, the fund achieved back-to-back partial exits from the travel-tech firm Ixigo.

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