Elevation Capital launches $500M fund to back early-stage AI startups in India
What's the deal? Elevation CapitalDealroom has a profile for this one. Try Dealroom → is launching its ninth fund, worth $500 million, to invest in early-stage companies with a focus on artificial intelligence, partners Mukul Arora and Mridul Arora told Mint. The India-focused VC firm counts Paytm, Swiggy, Urban Company, Spinny, Ixigo, and MakeMyTrip among its portfolio.
Why now? The Aroras disagree with the view that India is falling behind in the global AI race. "We believe AI is unlocking expertise on top of the connectivity and payments infrastructure India has already built," Mukul said, adding that expertise remains severely undersupplied.
What's the endgame? Elevation expects India to reach a billion internet users, hundreds of listed technology companies, and a new-age ecosystem worth over a trillion dollars. Financial services remain a key focus; Paytm, Mintifi, and Acko are among its bets, and much of the new fund is likely to flow there.
The firm keeps its fund size and investor base deliberately small. "We have remained quite concentrated, even on the limited partner side, choosing to build a few deep relationships," Mridul said, adding that $500 million is the right size to back founders with appropriate check sizes.
With the ninth fund, Elevation will have nearly $900 million to deploy across early- and late-stage opportunities. In 2025, it raised $400 million for its pre-IPO fund, Elevation Holdings, which has backed Spinny and Urban Company.
The signal: Elevation joins a wave of VC firms raising fresh capital. Accel closed its eighth India fund at $650 million, Peak XV Partners raised $1.3 billion across three funds, Z47 is in talks for a maiden $300-400 million fund, and Avataar Venture Partners is preparing a third fund targeting about $400 million. Since 2020, Elevation has raised nearly $1.33 billion across three vehicles, dating back to its first India fund in 2010.
Read more: Mint
Image credit: Ecole polytechnique / Paris / France
