Elevation Capital launches $400 million late-stage fund ‘Elevation Holdings’
The VC firm will invest in 10–15 start-ups targeting IPOs within three years
Investment range will be $20–50 million per company
VC firm Elevation Capital has launched a late-stage fund ‘Elevation Holdings’ to support start-ups planning to launch their IPO (initial public offering). The fund comes with a corpus of $400 million, according to The Economic Times report.
The VC has backed new-age companies like Paytm, Swiggy, Meesho, and Urban Company. With this new fund, the company will invest in approximately 10-15 start-ups which are eyeing to go public in next three years.
The average cheque will range between $20 million and $50 million, the report said. Primarily, it will focus on consumer and financial services platforms using technology. The new fund has already made investment in used-car marketplace Spinny.
“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 cheque size for a company of that scale,” Mridul Arora, partner, Elevation Capital told the news publication.
IPO Pipeline Fuels Investor Interest
Elevation Capital has joined a growing list of secondary-focused investment funds launched in recent years. These include Kenro Capital (set up by former Peak XV Partners MD Piyush Gupta), $500-million Oister Tribe Ace Fund (joint venture between Oister Global and Tribe Capital), Neo Asset Management (₹2,000-crore secondaries-focused fund), and PixelSky (₹400-crore fund floated by boutique investment bank IndigoEdge along with entrepreneur Hitesh Ahuja).
The rush into secondaries has picked up pace as more startups head to public markets, offering avenues for both fresh capital and early shareholder exits. This year alone, Ather Energy and BlueStone have gone public; while a dozen others, including Lenskart, PhysicsWallah, Groww, Pine Labs, Curefoods, and Boat, have filed their draft prospectuses.
Elevation’s own portfolio companies such as Meesho, Urban Company, Wakefit, and Aye Finance are also gearing up for listings.
Unlike peers that expanded aggressively, Elevation has consciously capped its new late-stage fund at $400 million, sticking to its strategy of maintaining relatively smaller fund sizes.
