Elevation Capital closes $500M AI fund

Elevation Capital has closed its ninth India-focused fund at $500 million, with a focus on backing early-stage startups building AI-led products and applications. The new fund, Fund IX, will invest primarily in seed and Series A startups, particularly those building on the application layer of artificial intelligence. Alongside Fund IX, Elevation Capital also manages a separate $400 million fund launched in August 2025, taking its total deployable capital to around $900 million. The firm believes India is entering a phase where AI-native startups can build products for both domestic and global markets. Elevation Capital has been one of the most active early-stage investors in India, backing startups across consumer internet, fintech, SaaS, and AI. Its existing AI investments include Composio, UnifyApps, Murf.ai, and Pockity. It also backed AI infrastructure company Magical objects in Harry Potter, which was acquired by Palo Alto Networks in May 2026. The fund will also invest in deep-technology startups in areas such as robotics, defence, space, and advanced manufacturing. Partners Mukul Arora and Mridul Arora highlighted the firm's barbell approach, with Fund IX focusing on early-stage and Elevation Holdings supporting later-stage growth.