Elev8 Venture Partners, a growth-stage investment firm, is expanding its portfolio by placing bets on the burgeoning D2C sector, alongside wealth tech start-ups.
Having previously backed companies like Astrotalk and IDfy, Elev8 is now targeting a diverse range of D2C brands, private labels, and e-commerce platforms across various categories and plans to add two more start-ups to its portfolio by the end of this year.
“Investors are showing a growing interest in B2C and D2C brands due to their capacity to foster direct and lasting connections with consumers. With technology making financial products more accessible, these brands are taking advantage of changing consumer behaviour by focusing on personalisation and smooth user experiences,” said Navin Honagudi, Managing Partner, Elev8 Venture Partners.
Additionally, there is an increase in interest in investing in D2C brands as more individuals look for transparency, efficiency, and control over their financial futures, transforming these industries from the ground up, he said.
Coffee segment
He further elaborated on how the offline space is getting significant traction in the funding environment, particularly within the coffee segment. “Start-ups like Blue Tokai and Third Wave have successfully attracted investors and are gaining momentum,” he said. Honagudi added that alongside these sectors, Elev8 is also assessing various sub-sectors within the broader D2C ecosystem.
Founded in 2023, Elev8 specialises in technology investments, typically Series B and beyond. The firm with its fund size of $200 million targets companies that are profitable or nearing profitability, with at least 50 percent y-o-y growth and healthy gross margins. The fund aims to make approximately 12 investments by 2027.
Commenting on exit strategies, Honagudi mentioned that Elev8 aims to hold its portfolio for around five years before seeking exits. While their preferred exit route is through IPOs, they remain open to mergers and acquisition opportunities if they offer attractive returns, he noted.