Elevation Capital closes $500 Mn India fund to back AI startups

Venture capital firm Elevation Capital has closed its ninth India-focused fund at $500 million, with a focus on backing early-stage startups building AI-led products and applications.

The new fund will invest primarily in seed and Series A startups, particularly those building on the application layer of artificial intelligence. The firm believes the next wave of AI companies will emerge by solving business and consumer problems using AI technologies.

Alongside Fund IX, Elevation Capital also manages a separate $400 million fund launched in August last year, taking its total deployable capital to around $900 million.

Elevation Capital has been one of the most active early-stage investors in India, backing startups across consumer internet, fintech, SaaS and AI. The firm said India is entering a phase where AI-native startups can build products for both domestic and global markets.

Partners at the firm said that while foundational AI models are largely being developed by global technology companies, significant opportunities exist for Indian founders to build AI applications and businesses on top of these models.

Elevation Capital has invested in listed firms like FirstCry, Ixigo, MakeMyTrip, Paytm, Swiggy, Meesho and Urban Company. The fund made back-to-back partial exits from travel-tech firm Ixigo.