As India’s public markets rebound, venture capital giant Elevation Capital is preparing to ride the wave by taking at least nine of its portfolio companies public over the next 12 to 24 months. This ambitious move underscores a pivotal moment not just for the firm, but for India’s broader startup ecosystem, which is maturing into one where public listings are increasingly viable exit routes.
A Powerful IPO Pipeline
Elevation’s IPO-bound cohort includes a diverse set of consumer and tech startups:
- Aye Finance
- Urban Company
- Acko
- Wakefit
- Meesho
- The Souled Store
- Spinny
- Mintifi
- Mosaic Wellness
Among them, Urban Company, Wakefit, and Aye Finance have already filed their draft red herring prospectuses and could go public by the end of this financial year. The rest are expected to follow in staggered fashion over the next two years.
Elevation does not plan to exit all of them completely. In select cases, it intends to retain significant post-IPO stakes, reflecting long-term conviction in the businesses.
Profitable Growth and IPO-Readiness
According to partner Chirag Chadha, many of the nine companies have already crossed the ₹1,000 crore revenue mark. More importantly, they are either profitable or on a clear path to profitability—an essential marker for gaining investor confidence in public markets.
This is not Elevation’s first rodeo with public exits. The firm has previously seen successful listings from names like MakeMyTrip (MMT), Justdial, Paytm, Swiggy, Ixigo, and Senco Gold—adding credibility to its current plans.
IPOs Over M&A: A Clear Strategy
Chadha emphasized that Elevation’s exit strategy hinges primarily on IPOs rather than mergers and acquisitions. While M&A remains a potential path in the U.S. and China, India’s ecosystem lacks a consistent pipeline of $500 million+ acquisition deals.
“We don’t aim for meaningful outcomes through M&As in India as of today. IPOs become the primary exit route for us, with a small percentage of secondary exits,” said Chadha.
This strategic clarity helps Elevation stay aligned with founders who have public listing aspirations—a central trait the firm looks for before investing.
Investment Style: Flexibility with Follow-Through
Elevation invests across early and growth stages, with cheque sizes ranging from $2 million to $30 million. Importantly, over half of each fund is reserved for follow-on capital, allowing the firm to double down on winners.
“When we invest at a very small scale, we earmark more capital for those companies down the line,” Chadha explained.
This disciplined capital deployment has allowed Elevation to stay relevant across various growth phases of a company—from early backing of startups like Chaayos and Yoga Bar (later acquired by ITC) to later-stage bets like Country Delight and Wakefit.
Fund Performance and What’s Ahead
The firm’s eighth fund, launched in 2022 with $670 million, is currently being deployed. Each Elevation fund typically backs 35–40 startups over a 3–4-year period. Although Chadha didn’t disclose specifics, he hinted that discussions for a ninth fund could begin as early as next year.
In the background, the pressure is mounting for venture firms to return capital to their Limited Partners (LPs). With public markets finally favoring tech and consumer companies, especially profitable or near-profitable ones, Elevation’s strategy is aligned with current market dynamics.
“Most funds in India take longer than 10 years to fully materialize into DPI,” Chadha noted, referring to the time it takes for investments to convert into actual distributions.
Yet Elevation seems better positioned than most, with four of its earlier funds already largely realized and showing healthy performance.
Bottom Line:
As India’s startup scene grows up, so do its exits. Elevation Capital is betting big that the next wave of value creation—and realization—will happen on the public markets. With nine IPOs in the pipeline, and a disciplined yet aggressive approach to investing, the firm is poised to cement its position as a powerhouse in Indian venture capital.
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This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.