Water Elemental grappling a Huge creature, does it take damage from Whelm’s second paragraph?

If a Water Elemental were to use the grappling rules to grapple a Huge creature (since it is Large), would that creature then take damage from this:

At the start of each of the elemental’s turns, each target grappled by it takes 13 (2d8 + 4) bludgeoning damage.

Or does this damage only work against the one Large or two Medium- creatures that get stuck by Whelm?