Team StartupCity

• Elevation Capital raises 400 million dollars for a new fund focused on late stage tech startups.
• The fund targets profitable or near profitable companies, aiming to support them through IPO and beyond.
• First investment made in Spinny’s 170 million dollar funding round, with more selective deals to follow.

Elevation Capital, a leading venture capital firm, has announced the launch of Elevation Holdings, a new 400 million dollar fund dedicated to late stage investments in Indian startups. This marks a strategic shift for the firm, which was previously known for early stage funding in companies like Paytm, Swiggy, and Urban Company.

The fund will focus on technology driven consumer and financial services startups that have either reached profitability or have a clear path to it within the next three years. Unlike traditional VC models, Elevation Holdings plans to stay invested even after companies go public, offering what it calls ‘permanent capital’.

Its first deal is already done participating in a 170 million dollar funding round for Spinny, a used car platform that is expected to list on public markets in the near future.

The new fund will write checks between 20 and 50 million dollars and aims to invest in 10 to 15 companies. By keeping a curated portfolio, Elevation Capital wants to offer long term support to startups ready to scale sustainably.

With late stage funding slowing down in India due to global economic uncertainty and reduced foreign capital flow, Elevation sees this as a chance to fill the gap with ‘patient capital’. The firm believes startups should focus on strong business fundamentals rather than burning cash to chase market share.

Elevation’s move could bring more discipline and maturity to India’s startup ecosystem and attract additional foreign investors, especially as the fund supports companies preparing for IPOs.

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Founded in 2011 as SAIF Partners India, the firm rebranded to Elevation Capital in 2020. Its latest move follows the launch of its 670 million dollar Fund VIII in 2022, focused on early stage investments.

With Elevation Holdings, the firm aims to complete the funding lifecycle from early growth to public markets while promoting sustainable business models in India’s fast evolving digital economy.