Summary:
Elev8 Venture Partners, backed by Venture Catalysts, has raised ₹1,400 crore ($160 million) in its debut fund. The firm is betting on profitable, tech-driven businesses in consumer internet, fintech, and enterprise software, while steering clear of risk-heavy segments like gaming and social media.
Focus on Tech-Enabled Growth
With its maiden fund, Elev8 aims to back market leaders across technology-enabled sectors such as consumer internet, fintech, and enterprise software. The firm plans to invest in 12–14 companies over the next 18 months, with annual deal flow of 4–5 investments in the $10–30 million range.
Profitability at the Core
Managing Partner Navin Honagudi underscored that Elev8’s philosophy revolves around investing only in profitable businesses. He described profitability as “freedom,” noting that founders who survived the pandemic’s challenges have emerged stronger and more resilient.
Strategic Investment Approach
Unlike many venture firms, Elev8 will avoid volatile categories such as gaming and social networking, instead backing category leaders supported by credible institutional investors. The firm’s strategy is designed to ensure sustainable scaling rather than chasing risky growth.
Filling the Funding Gap
Honagudi compared India’s funding landscape to an hourglass — crowded in early and late stages but thin in the middle. Elev8 sees this mid-stage gap as a clear opportunity for growth-stage managers to play a crucial role.
One of India’s Largest Maiden Funds
Despite a global funding slowdown, Elev8 has raised one of the largest debut funds in the country, thanks to its disciplined focus on profitability. The firm’s thesis challenges the traditional belief that scale and profits cannot coexist, citing examples like PhysicsWallah, which achieved rapid growth while staying profitable.
Disclaimer:
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