Indian founders are building globally competitive products

As the AI supercycle picks up, Krishna Mehra, AI Partner at Elevation Capital, breaks down the venture capital firm's AI investment thesis.

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In a conversation with Ayanti Bera, he spells out what makes Indian founders competitive globally, how to cut through the AI noise, and why product craft and adaptability trump traditional moats in today's AI cycle. Excerpts:

What areas in AI is Elevation Capital most excited about right now?

We've been extremely active in the past year, with 15 to 20 new and follow-on investments across the AI spectrum. Our investments span core areas such as developer tools and data infrastructure, horizontal and vertical applied AI, and AI-driven services. These bets are driven by the belief that India's engineering and product talent can build globally defining companies.

What's happening in applied AI, and where are the promising use cases coming from?

In the Applied AI space, we've seen horizontal plays, i.e., products used by designers, video editors, or traders, where bottom-up adoption is strong. Vertical AI is also heating up. We're seeing compelling innovation in healthtech, financial services, and even construction. We believe this sector is insulated from disruption by large companies but still ripe for change.

You also mentioned AI in services—what's happening there?