Elev8 Venture Partners closes $160m India fund for startups

Elev8 Venture Partners has closed its first India-focused fund at 1,400 crore rupee (US$160 million) to invest in growth-stage startups over the next 12 to 18 months.

The fund is backed by investors from South Korea, Hong Kong, and India, including a sovereign fund, large family offices, and several unicorn founders as limited partners.

KB Investment, part of South Korea’s KB Financial Group, served as anchor investor, while the Indian Self-Reliant India Fund also contributed significant capital.

Elev8, launched in 2023 and backed by Venture Catalysts, has already invested around one-third of the fund in five companies: Astrotalk, IDfy, Smallcase, Porter, and Snapmint, with investments ranging from US$8 million to US$14 million.

The firm said it co-invested alongside its limited partners in several deals.

According to Elev8, all its portfolio companies are scaling at over 30% annually and remain profitable.

Elev8 plans to invest the remaining capital in fintech, software as a service (SaaS), B2B platforms, and consumer brands.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Cross-border VC funding aligns with India’s market recovery

Elev8’s successful fund closure comes at a strategic moment as India’s venture capital market rebounds from recent lows.

Indian VC funding surged to $13.7 billion in 2024, representing a 1.4x increase from 2023 levels, with the number of deals rising from 880 to 1,270 2.

This recovery follows a significant downturn where Indian PE and VC investments had declined 35% to $39 billion in 2023, making the current fundraising environment more favorable for new funds like Elev8’s 3.

The fund’s focus on growth-stage companies targeting fintech, SaaS, and B2B platforms aligns with market trends, as tech-first sectors captured over 60% of total funding in the recent recovery 2.

KB Investment’s anchor role demonstrates how international institutional investors are re-engaging with the Indian market during this upturn, particularly targeting the growth segment where Elev8 operates with cheque sizes between $8-14 million.