Sharp Focus on Late Stage Startups, AI Prominent in Firm's Portfolio: Elev8 Startups may also have other factors to raise capital at this stage such as overseas expansion, inorganic acquisition, bolstering existing technology teams, CXO level hiring, or even when aiming for a benchmark valuation for IPO in a few years, Honagudi explained.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Founded by former Kae Capital partner Navin Honagudi, Elev8 Venture Partners is a growth-stage venture capital firm focusing on companies that are series B and beyond.
As Honagudi describes, "At Elev8, we focus on investing in companies at series B, series C stage, companies which are profitable. Companies that have figured out their market fit and have a proof of concept. That is when they are looking to expand and when we come in and invest at these stages."
Startups may also have other factors to raise capital at this stage such as overseas expansion, inorganic acquisition, bolstering existing technology teams, CXO level hiring, or even when aiming for a benchmark valuation for IPO in a few years, Honagudi explained.
Astrotalk, the sector-leading astrology startup, has been one of the stand-out performers in the Indian startup ecosystem and also a fine example of Elev8's focus on its portfolio companies.
According to Honagudi, the company is growing at double the rate every year, and in FY24 recorded INR 600 crores in revenue, with projections to close revenue of INR 1200 crores this year.
"And all of that while being profitable and having raised just one round of funding. They raised about USD 35 million and they are an extremely profitable company. Overseas revenue is today 25 per cent of their revenue, so expanding into overseas markets. They are building a watch list for an inorganic acquisition. At some point, they will be thinking of an IPO," said Honagudi.
On the burgeoning IPO market in India, Honagudi opines that it is linked to how the markets have been this calendar year and said that at the same time, for the next couple of years, there might be a lot or very few IPOs coming at that point of time. "Now, with the current market correction, we just need to see how things shape up."
Elev8 also has a strategic partnership with KB Investment, South Korea's leading investment firm that has been actively investing in India since 2019. With over a trillion dollars in AUM, the firm has come in as an anchor to Elev8's fund with a 20 per cent commitment, as per Honagudi,
"The intent is to help our portfolio companies from here on expand into the Southeast Asian market. More important than capital is the knowledge that they bring to the table. Helping us not only analyze companies but also with portfolio management," said Honagudi.
AI has been a significant factor for all startups in these days and Honagudi said that their portfolio companies have been leveraging the new-age technology in the form of AI-bots for aspects such as marketing and even for day-to-day aspects.
"Today no longer do you need a significantly large amount of marketing agencies, so at least in our portfolio companies, we have seen the companies use AI significantly to improve efficiency and productivity," said Honagudi.
