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Elevation Capital raises $670 million, its largest India fund

Elevation Capital has backed the likes of Swiggy, Meesho, Paytm and Unacademy.

April 08, 2022 / 09:34 AM IST
Representative image.

Representative image.

Elevation Capital, which has backed the likes of Swiggy, Meesho, Paytm and Unacademy said on April 8th,2022 that it has closed its latest fund with a corpus of $670 million, its largest fund for India till date. It will invest in sectors such as consumer internet, fintech, SaaS, apart from emerging themes such as Web3 and cryptocurrency. The new fund comes at a time when investors have turned more cautious, amid questions on sky high valuations and a rout in new age technology stocks.

Moneycontrol was the first to report in December 2021 on Elevation's plans to raise a $600 million fund, barely a year after its last fund, to hold ground in an fiercely competitive market. Over the past two decades, Elevation (previously known as SAIF partners) has invested almost $2 billion of capital in over 150 companies across seven funds, with 13 early-stage investments becoming unicorns.

In a recent interview with Moneycontrol, its co-managing partner Mukul Arora said, "The Indian tech market has now finally hit PMF (product market fit, a pivotal moment for any startup when its product is finally accepted by enough customers and it can now scale).

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"Tech contributes 20% and 35% of GDP in the US and China respectively. In India, there is no published report but my sense is around 1-1.5%. Now you have Web 3.0 and crypto, which is a level playing field for all countries. And given the quality of our talent, I think we have a great opportunity to actually leapfrog everyone else in that space," he had said,

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Elevation’s $670 million Fund VIII is one of the largest India-focused venture platforms to date, which will allow it to make a larger initial investment and support them in the growth stages as well.

Also Read | Indian startups raise over $10 billion funding in first quarter of 2022

It has been one of the biggest beneficiaries of the funding boom. Its portfolio has seen six unicorns – start-ups valued at over $1 billion – created in 2021 alone such as social media firm ShareChat and Meesho, home services provider Urban Company, real estate portal NoBroker, and online car-buying app Spinny and Acko Insurance. Its stakes in Swiggy, Meesho, ShareChat and Urban Company alone are worth over $1.5 billion, almost four times the size of its last fund.

Elevation has been among the more prolific private investors in India and most notably, an early backer of fintech firm Paytm. Despite Paytm’s lacklustre listing, Elevation stands to make over a 100 times what it invested in the company. It has already cashed out a few hundred million dollars, with its total stake worth over a billion dollars.

In the previous years, Elevation’s strategy was seen as cautious and measured, especially compared with peers such as Sequoia and Lightspeed. But it stepped up deal-making in 2021, with over 35 investments so far this year, more than double what it did in previous years. These include teenage neobank Fampay, blue collar networking platform Anar and spirituality app AppsForBharat.
Chandra R Srikanth is Editor- Tech, Startups, and New Economy
first published: Apr 8, 2022 09:28 am
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