Lighthouse closes third India fund at $230m

Lighthouse India Fund III launched in 2017 and reached a first close of $150 million last year. The final close brings the firm’s total assets under management to about $500 million, according to a release. Lighthouse raised $93 million for its first fund and $138 million for its second vehicle.

LPs in the fund include the International Finance Corporation (IFC), which is also an investor in Funds I and II. CDC Group, German development finance institution DEG, and several large global endowments, pension funds, and family offices also contributed to the final close.

The new fund will invest INR500 million-2.5 billion ($7.2 million-$35.9 million) per deal, focusing on lower mid-market Indian companies in sectors including consumer goods, agriculture, construction, healthcare, and financial services. Lighthouse targets businesses that cater to increasingly affluent Indian middle-class consumers, helping them meet basic needs such as housing, food, healthcare, and clothing.

Since closing its first fund in 2008 Lighthouse has backed a number of well-known consumer brands. They include snack food maker Unibic India, which was exited to Peepul Capital in 2017. The GP has already made four investments from Fund III: mattress brand Duroflex, beauty retailer Nykaa, orthotic soft goods specialist Tynor, and footwear maker Aqualite.

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