Venture capital firm Elevation Capital has launched its ninth India-focused fund with a corpus of $500 million, reaffirming its long-term commitment to backing the country’s next generation of entrepreneurs. The new Fund IX will primarily invest in seed and Series A startups, with a strong focus on artificial intelligence (AI)-led businesses and deeptech ventures.
The fund arrives at a time when AI is rapidly reshaping industries worldwide and attracting a growing share of venture capital. Elevation Capital believes India is well-positioned to build globally competitive AI companies, despite concerns that much of the world’s AI investment is currently concentrated in the United States. According to the firm, India’s digital infrastructure, entrepreneurial talent and expanding technology ecosystem create a strong foundation for the next wave of innovation.
Fund IX will back startups developing AI-powered solutions for sectors such as healthcare, education and financial services, where technology can help solve large-scale operational challenges. The firm also plans to invest in AI software products built in India for global markets, alongside deeptech startups working in areas including robotics, defence, manufacturing, space technology and energy.
Unlike its previous fund, which invested across multiple stages, the new vehicle will concentrate on early-stage companies. Later-stage investments will continue through Elevation Capital’s separate $400 million Holdings Fund, taking the firm’s total deployable capital to around $900 million.
The fund has received overwhelming support from existing limited partners, reflecting investor confidence in Elevation Capital’s investment strategy and India’s startup ecosystem. The firm has previously backed several successful startups, including Swiggy, Urban Company, Meesho, NoBroker and Paytm, and now expects AI-led businesses to drive the country’s next phase of startup growth.
Elevation Capital said the AI revolution represents a once-in-a-generation opportunity for Indian founders.