Elevation Capital launches $400 Mn late stage fund for IPO bound startups

Elevation Capital is launching a new $400 million fund to back companies for the long term, moving beyond its usual focus on early-stage startups and aiming at those it sees creating value in public markets.

According to an ET report, the late-stage vehicle, called Elevation Holdings, will invest in 10-15 companies with cheque sizes ranging between $20 million and $50 million. The new fund will primarily back companies in the consumer and financial services segments with a technology focus.

“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,” said Mridul Arora, partner, Elevation Capital.

Elevation Holdings will operate in parallel to its Fund VIII, a $670 million early-stage vehicle that backs startups by investing $2-5 million. It will look at companies that are not more than three years away from going public, and are either profitable or have a clear line of sight to profitability. The new fund has already invested in used-car marketplace Spinny.

Elevation Capital has invested in listed firms like FirstCry, Ixigo, MakeMyTrip, Paytm, and Swiggy, as well as IPO-bound startups such as Meesho and Urban Company. Recently, the fund made back-to-back partial exits from travel-tech firm Ixigo.