L Capital Asia targets India e-commerce

According to the Economic Times, the GP is looking to make around three investments this year with a minimum commitment of $30-50 million per company. The decision is said to be prompted by both the change of government and early signs of economic recovery in the country.

Bijou Kurien, a member of L Capital's strategic advisory board, said he expected a shift in the entire e-commerce market in India from the topline and discounts-driven business model to improving the quality of operations. In addition to targeting differentiated e-commerce companies, Kurien said L Capital will look to back beleaguered family-owned businesses.

"Many old family-run successful companies have lost direction and now the new generation wants to bring them back on track with outside professional and financial help," he said.

The private equity firm was previously wary of making investments in India. In late 2013, after the GP reached the $950 million hard-cap on its second Asia fund, Regional Managing Director Sanjay Gujral told AVCJ that L Capital would defocus from India in order to concentrate on Southeast Asia, as well as developed countries like Australia and Japan.

Fund I saw more than 40% of its corpus deployed in Greater China, around 20% in India, 15% in Australia and the rest in Southeast Asia.

Fund II has made five investments so far, including: two Australian companies, swimwear brand Seafolly and sports apparel brand 2XU; Korean talent agency YG Entertainment; Singapore restaurant chain Crystal Jade; and Greater China out-of-home advertising company Asiaray Media Group.

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• Topics
• South Asia
• Buyouts
• Expansion
• Consumer
• Technology
• India
• L Capital Asia
• Consumer
• TMT
• Growth capital