Investment company L Catterton, based in the United States, finalizes the initial funding of its India-centric consumer-oriented fund at a value of $200 million.
In a significant move for the Indian startup ecosystem, global private equity firm L Catterton has recently closed its maiden $48 million fund targeting consumer tech and enabler startups. The fund, which is expected to invest in seven to nine businesses, marks L Catterton's continued commitment to India's burgeoning consumer market.
The fundraising comes amid heightened interest in India's consumer market, with L Catterton itself having raised approximately Rs 1,763 crore for its India-focused consumer fund. Early backers of the fund include the International Finance Corporation and clients of Kotak Private, the wealth management division of Kotak Mahindra Bank. The International Finance Corporation had proposed a $30 million infusion in the fund, capped at 19.9% of the total commitments.
L Catterton manages about $37 billion globally across private equity, credit, and real estate. The India-focused consumer goods fund was supported by Temasek in the $200 million fundraising. So far, the fund has made a single investment, in healthy snack maker Farmley.
The fund's target is a corpus of $400 million, with an additional $200 million green-shoe option, potentially totaling $600 million. Typical ticket sizes for investments range from $25 million to $150 million. The India fund focuses on food and beverage companies, consumer services in healthcare, retail, and restaurants, as well as branded consumer products. The fund is focused on providing growth capital to mid-market consumer businesses.
Anjana Sasidharan and Vikram Kumaraswamy co-head L Catterton India's operations. Sanjiv Mehta, former Hindustan Unilever chief executive, serves as executive chairman of L Catterton India. In India, L Catterton's portfolio includes pet food maker Drools and beauty brand Sugar Cosmetics.
It's worth noting that L Catterton has invested in over 275 companies worldwide, including consumer brands such as Peloton, Birkenstock, and Restoration Hardware. The firm's limited commitment to below 20% of the fund ensures a diverse portfolio of investments.
The news of L Catterton's fund close follows last month's announcement by Singapore-based Venturi Partners of the first close of its second consumer-focused fund at $150 million. The consumer tech and enabler startup space in India continues to attract significant investment, boding well for the growth and development of the sector.
