India’s Lighthouse reaches $150m first close on Fund III

LPs in the fund, named Lighthouse India Fund III, include the International Finance Corporation (IFC), which committed $20 million earlier this year, along with additional unnamed institutional investors. The GP is targeting a final close of $200 million by June. According to a release, this will raise the firm’s total assets under management to nearly $500 million.

Lighthouse India III is the successor to India 2020 Fund II, which closed in 2015 at $138 million. IFC also invested in that vehicle, as did the Overseas Private Investment Corporation (OPIC), a development finance arm of the US government, which put in $42 million. Like that fund, Lighthouse India III will invest in lower mid-market Indian companies in sectors including consumer goods, agriculture, construction, healthcare and financial services.

Launched in 2008, Lighthouse primarily focuses on businesses that cater to Indian middle-class consumers and their growing incomes. It seeks companies that can help these consumers meet their families’ basic needs, such as housing, food, healthcare and clothing, rather than providing access to luxury items.

Lighthouse’s recent investments along these lines include Stylam Industries, a manufacturer of laminates for the construction industry, and apparel retailer V2. Last year the firm also exited its stake in snack food maker Unibic India to Peepul Capital for an undisclosed amount.

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• Topics
• South Asia
• Fundraising
• Growth
• India
• Lighthouse Funds
• Consumer