National Investment and Infrastructure Fund Limited (NIIF) Fund of Funds has proposed to invest up to $48.5 million (Rs. 400 crore) in the latest mid-market private equity fund of Lighthouse Funds, according to its announcement on Monday.
Lighthouse Funds, which targets fast-growing consumer brands in India, raised $100 million in 2009, followed by $135 million and $230 million in two funds in 2015 and 2019, respectively.
Lighthouse Funds has backed online beauty retailer Nykaa, which was listed in 2021 at a near $13 billion valuation, and ethnic apparel and home accessories brand Fabindia, which had earlier filed to raise as much as $500 million in an IPO. Its other investments include startups such as Wow! Momo, Bikaji Foods, Duroflex Mattresses, and Medikabazaar.
“With a target size of up to Rs 3,500 crore (around $425 million), Lighthouse India Fund IV will invest in high-growth businesses in sectors such as healthcare, specialty manufacturing, digital transformation, and consumer products and services,” NIIF said in a statement.
NIIF manages over $4.3 billion of equity capital commitments across its three funds – Master Fund, Fund of Funds, and Strategic Opportunities Fund.
In September, World Bank member International Finance Corporation (IFC) proposed to invest up to $50 million in the Lighthouse fund.
Mumbai-based Lighthouse Funds, founded in 2006 by Sachin Bhartiya, Sean Sovak, and Mukund Krishnaswami, has invested in 29 companies and continues to aggressively seek out similar opportunities where it can invest $20-50 million across its bets. Lighthouse Funds has around $500 million in assets under management (AUM).