Elevation Capital Raises $500 Mn Fund IX to Back India's Next Wave of AI Startups

Venture capital firm Elevation Capital has closed its ninth India-focused fund at $500 million, reinforcing its conviction that the country's next generation of technology giants will emerge from AI and deeptech, even as the broader venture funding environment remains selective. 

The new vehicle, Fund IX, will focus exclusively on seed and Series A investments, marking a return to Elevation's early-stage roots. Unlike its previous $670 million Fund VIII, which invested across multiple stages, the new fund will work alongside Elevation Holdings, the firm's recently launched $400 million late-stage vehicle. Together, the two funds give Elevation $900 million in deployable capital across the startup lifecycle. 

"We are following a barbell approach," Co-Managing Partner Mukul Arora told Moneycontrol. "Elevation Capital IX will remain sharply focused on seed and Series A opportunities, while Elevation Holdings will partner with category leaders well beyond their IPO. Across the two funds, we will be investing from a combined pool of $900 million." 

According to the firm, AI represents a fundamental platform shift rather than a passing technology cycle. Global capital has largely flowed into foundation model developers. Elevation believes India's opportunity lies in building AI-native application companies that solve complex problems across healthcare, education, and financial services, as well as globally competitive software products. 

The firm also sees opportunities in deeptech sectors, including robotics, defence, space, energy, and precision manufacturing.

"AI isn't just another technology wave. It is a new computing paradigm," the firm said in a blog announcing Fund IX, adding that India now has the ingredients to build globally significant AI companies through its engineering talent, digital public infrastructure, and growing founder ecosystem. 

The fundraising comes amid a mixed venture capital market. While late-stage investments and IPO timelines have been affected by macroeconomic uncertainty and cautious public markets, early-stage funding has remained relatively resilient, particularly for AI-native startups. Elevation said it intends to write larger initial cheques and double down on breakout companies over time. 

Elevation Capital has backed several of India's best-known startups, including Swiggy, Paytm, Meesho, Urban Company, FirstCry, NoBroker, and Unacademy.