12 December 2018, India:
Private equity firm Lighthouse has received a commitment of $25 million for its third private equity fund, Lighthouse India Fund III from CDC Group plc, a development finance institution owned by the UK Government.
Other investors in the fund include marquee institutions and global family offices.
Mukund Krishnaswami, co-founder, Lighthouse, said, “We are thrilled to welcome CDC to the Lighthouse family. CDC brings decades of experience working in emerging markets and in India particularly. We look forward to their partnership and guidance as we continue to back entrepreneurs building long term, sustainable businesses.”
Alagappan Murugappan, Managing Director and head of Asia Funds, CDC, said, “This investment enables CDC to get our capital into family-backed, small-to-midcap businesses in job creating sectors. As India transitions from developing to developed economy, SMEs will play an increasingly important role but they will need more investment than ever. Historically, this segment of the Indian market has seen a widening gap between the supply and demand of capital. We’re pleased to be working alongside Lighthouse to play a part in bridging this financing gap.”
Lighthouse has closed four investments from its third fund. Earlier this month, it announced that it was investing over INR 250 cr in Aqualite Industries, one of India’s leading footwear companies. Last month, the fund invested INR 160 cr in Duroflex, a leading mattress brand in south India. In September, it made an investment of INR 113 cr in Nykaa, India’s premier beauty retailer, while in June, it invested INR 83 cr in Tynor Orthotics, a leading orthotic soft goods brand.
Lighthouse is a leading mid-market private equity firm focused on growth investments in India’s consumer sector. It has backed marquee consumer centric brands such as ethnic snack food player – Bikaji Foods, luxury premium ayurvedic personal care brand – Kama Ayurveda, ethnic lifestyle brand – FabIndia, and India’s leading sanitaryware brand – Cera.
(Image – kyabae)