Lok seeks $150m for fourth India fund
Indian venture capital firm Lok Capital is targeting $150 million for its fourth fund, which will invest in growth-stage companies with a potential for positive social impact.
Dutch development finance institution FMO is considering an investment of up to $15 million in the first close of Lok Capital Growth Fund IV (LCGF IV), according to a disclosure. FMO also contributed to Lok's previous vehicle, which launched in 2016 and closed the following year at $90 million.
Lok was founded in 2004 and has raised more than $175 million across its three previous funds. The GP primarily invests in companies pursuing financial inclusion among India's lower-income population, with its portfolio including mortgage company Ummeed Housing Finance and non-banking finance company Veritas Finance.
Healthcare and agriculture, where Indian investors see considerable room for modernization, are also significant areas of focus, with a third of the fourth fund's corpus expected to be invested in these sectors. Lok's previous deals here include diabetes clinic chain Dr. Mohan's, and dairy brand Osam.
FMO is an active backer of PE funds pursuing social impact in South Asia. Its commitments in the region extend beyond India to include markets such as Nepal, where the institution last year backed a $37 million top-up vehicle raised by Dolma Impact Fund. FMO has also made a number of direct investments in the region, supporting companies like renewable energy developer Avaada Energy and online lending platform InCred.
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