Lighthouse Funds, a mid-market consumer and healthcare-focused fund in India, has invested Rs 229 crore (around $27 million) in luggage maker Safari Industries, per an announcement.
The investment has been routed through Lighthouse India Fund IV AIF, which counts India’s National Investment and Infrastructure Fund (NIIF) as one of its backers.
Safari Industries manufactures and retails a diverse range of hard and soft luggage, rolling bags, and backpacks.
With over 800 SKUs across categories and over 9,300 online and offline customer touch-points, Safari Industries claims to be the third-largest luggage company in India.
“The Indian luggage market is a beneficiary of increasing leisure travel and wedding spends,” said Sachin Bhartiya, co-founder and partner at Lighthouse Funds in a media statement. “Over the past decade, we have seen dramatic upgrades in rail and road connectivity and significant growth in the aviation sector. India’s tourism potential is huge, and we see structural tailwinds for the sector,” he added.
Meanwhile, Sudhir Jatia, chairman and managing director of Safari Industries added: “The Indian luggage market still remains highly unorganised, and we intend to leverage Lighthouse’s experience in building high-quality brands as we penetrate deeper.”
Lighthouse is a leading mid-market private equity (PE) firm focused on growth investments in the consumer and healthcare space.
The firm has been investing in India since 2007 and has invested in over 30 companies across consumer and healthcare brands. Lighthouse’s investments include Indian brands such as Bikaji Foods, Nykaa, Duroflex Mattresses, Fabindia, Ferns N Petals, Cera Sanitaryware, and Kama Ayurveda, among others.
Global alternative investment firm Investcorp, which had invested Rs 75 crore in Safari Industries in February 2021, exited its investment in the company clocking an IRR of 102%.