Elevation Capital launches $500 million fund to support AI and deeptech startups

Elevation Capital, which has backed companies like Paytm and Swiggy, has raised a $500 million fund to back early-stage startups in India.

Fund IX, the venture capital firm’s ninth India-focused vehicle, will focus on seed and Series A investments.

Elevation will make later-stage investments through Elevation Holdings, a separate $400 million vehicle launched in 2025. The two funds give the firm a combined $900 million to invest across different stages of a company’s development.

The firm said Fund IX would back companies using AI to address challenges in areas including healthcare, education and financial services.

It will also invest in enterprise software and AI infrastructure businesses targeting international customers, as well as deep-technology companies working in areas such as robotics, defence, space and advanced manufacturing.

Its existing AI investments include Composio, UnifyApps and Murf.ai.

It also backed AI infrastructure company Portkey, which was acquired by US cybersecurity business Palo Alto Networks in May 2026. Palo Alto Networks did not disclose the financial terms of the deal.

Alongside software businesses, Elevation plans to strengthen its investment capabilities in deep technology.

It's worth noting that deeptech startups typically need longer development periods and more capital than conventional software startups, a challenge that the firm acknowledged in its announcement.