Elev8 Venture Partners Sets Sights on D2C Start-Ups for Portfolio Growth.

Elev8 Venture Partners, a growth-stage investment firm, is expanding its portfolio with a focus on the rapidly growing direct-to-consumer (D2C) sector, along with wealth tech start-ups. The firm, which has previously invested in companies like Astrotalk and IDfy, is now targeting a range of D2C brands, private labels, and e-commerce platforms. Elev8 plans to add two more start-ups to its portfolio by the end of the year.

Navin Honagudi, Managing Partner at Elev8, highlighted the increasing investor interest in B2C and D2C brands due to their ability to form direct, long-term relationships with consumers. "With financial technology making products more accessible, these brands are capitalizing on changing consumer behaviors by focusing on personalization and seamless user experiences," he said.

Honagudi also noted the growing appeal of D2C brands as consumers seek transparency and control over their financial futures, leading to significant transformations in these industries. He pointed out that offline ventures, especially within the coffee segment, are gaining traction, with start-ups like Blue Tokai and Third Wave drawing investor attention. Elev8 is also exploring other sub-sectors within the D2C ecosystem.

Founded in 2023, Elev8 Venture Partners specializes in technology investments, primarily at the Series B stage and beyond. With a $200 million fund, the firm targets companies with 50% year-on-year growth, healthy gross margins, and profitability or near-profitability. The fund plans to make 12 investments by 2027.

Regarding exit strategies, Honagudi explained that Elev8 typically holds its investments for around five years, with a preference for exiting through IPOs. However, the firm is also open to mergers and acquisitions if they present attractive returns.

HBL