$400 M late-stage fund for IPO bound startups launched by Elevation Capital

With the launch of a new $400 million fund, Elevation Capital is shifting its focus from early-stage startups to businesses it believes are adding value in public markets.

An ET report claims that Elevation Holdings, the late-stage vehicle, will invest in ten to fifteen businesses with checks totaling $20 million to $50 million. With an emphasis on technology, the new fund will mainly support businesses in the consumer and financial services sectors.

“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 function alongside its Fund VIII, an early-stage investment vehicle worth $670 million that invests $2–5 million in startups. It will examine businesses that are either profitable or have a clear path to profitability and are no more than three years away from going public. The new fund has already made an investment in Spinny, a marketplace for used cars.

Elevation Capital has made investments in IPO-bound startups like Meesho and Urban Company as well as publicly traded companies like FirstCry, Ixigo, MakeMyTrip, Paytm, and Swiggy. The fund recently made two consecutive partial withdrawals from Ixigo, a travel technology company.