MUMBAI: The next unicorn may not need a horn, it may just need a smarter algorithm. Betting that artificial intelligence will define the next wave of Indian startups, venture capital firm Elevation Capital has closed its ninth India-focused fund at $500 million, doubling down on early-stage investing despite a more cautious funding environment.
The new Fund IX will primarily back Seed and Series A startups, marking Elevation’s first India-focused fund in more than four years after its $670 million Fund VIII.
While the latest fund is smaller than its predecessor, the firm said it should be viewed alongside Elevation Holdings, its recently launched $400 million late-stage investment vehicle. Together, the two funds give Elevation $900 million in deployable capital across the startup lifecycle.
The fundraise comes as venture investors become increasingly selective amid macroeconomic uncertainty, a weaker rupee and longer IPO timelines. Even so, early-stage investing has remained relatively resilient, particularly in artificial intelligence, which continues to attract capital despite the broader slowdown.
Under this strategy, Fund IX will focus on identifying promising startups at the earliest stages, while Elevation Holdings will back category leaders as they scale, including through public market journeys.
Artificial intelligence sits at the heart of that strategy. Elevation believes AI will power the next generation of large technology companies emerging from India, supported by the country’s expanding pool of engineering talent and entrepreneurial ecosystem.
The report notes that AI-native startups have become one of the brightest spots in India’s venture landscape, drawing investor interest even as funding remains subdued across several other sectors. Elevation sees this as an opportunity to deepen its engagement with founders building technology-led businesses from the ground up.
Partner Mridul Arora told the publication that the early-stage investment environment remains healthy. The firm currently completes around 15 to 18 investments annually and expects to maintain that pace, signalling continued confidence in India’s startup pipeline despite broader market headwinds.
With Fund IX complementing its late-stage investment platform, Elevation is positioning itself as a long-term partner for founders from the first cheque to the public markets while placing one of its biggest bets yet on AI as the engine of the next decade of innovation.
