Elev8 Venture Partners raises ₹1,400 crore maiden fund, bets on tech-enabled startups

Elev8 Venture Partners, backed by Venture Catalysts, is sharpening its focus on technology-enabled businesses across consumer internet, fintech, and enterprise software as it charts its next phase of growth with its maiden ₹1,400 crore ($160 million) fund.

The firm has made it clear that it will avoid high-risk segments like gaming or social networking, instead backing long-term founders who are number one or two in their category and already backed by credible institutional investors.

With its maiden fund, Elev8 plans to make 12–14 investments in total over the next 18 months. The firm expects to close four to five deals annually with ticket sizes ranging from $10 million to $30 million.

Profitability remains central to Elev8’s investment thesis. Navin Honagudi, Managing Partner, stressed that the firm invests only in profitable companies, noting that “profitability is freedom.” He added that founders who have weathered near-death experiences during Covid are more resilient and better positioned to scale sustainably.

Honagudi described India’s funding ecosystem as resembling an hourglass — crowded at the early and late stages but thin in the middle. This leaves a clear opportunity for homegrown growth-stage fund managers like Elev8 to step in.

Despite the global fundraising slowdown, Elev8 has managed to raise one of the largest maiden funds in India. Honagudi attributed this to the firm’s focused strategy on growth-stage companies and its disciplined approach to profitability.

Importantly, Elev8 challenges the conventional belief that growth and profitability cannot go hand in hand. Citing the example of PhysicsWallah, Honagudi noted that Indian startups are proving they can achieve rapid scale while remaining profitable, a shift in mindset that aligns closely with Elev8’s thesis.

Watch accompanying video for entire conversation.