L Catterton's India-focused consumer fund closed at $200 million, or roughly Rs 1,760 crore, on its first close.

Last year, L Catterton Asia and Sanjiv Mehta, a former executive at Hindustan Unilever Ltd., established the L Catterton India Fund (Fund I or the Fund) as an investment vehicle to invest in mid-market consumer companies in India.

Key Highlights

• L Catterton India consumer fund raises $200 million in first close, targeting $400 million total.
• Fund will invest in mid-market consumer brands like food, retail, healthcare, backed by IFC and Kotak clients.

A report states that the private equity fund wants to raise $400 million, with an additional $200 million greenshoe option.

Some clients of Kotak Private, the private banking and wealth management arm of Kotak Mahindra Bank, as well as the International Finance Corporation (IFC) of the World Bank are rumored to have committed to the PE fund. 

The fund will seek to invest in a variety of industries, including retail, healthcare consumer services brands, and food and beverage companies. With an average ticket size of $25 million to $150 million, it is anticipated to invest in seven to nine companies. To date, it has invested once in Farmley, a direct-to-consumer brand of healthy snacks.

Vikram Kumaraswamy and Anjana Sasidharan co-lead India's armed forces, while Mehta serves as executive chairman of L Catterton of India.

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With $37 billion in assets under management (AUM), consumer-focused investment firm L Catterton's stake in the fund will be limited to 19.9%. With companies like PVR, Drools, Sugar Cosmetics, FabIndia, and Jio Platforms in its India portfolio, the investment firm says it has made over 275 investments since its founding in 1989.

Atomic Capital, a venture capital firm that focuses on early and growth stages, revealed last month that its first fund had closed at 400 crore. It seeks to support new businesses in the consumer technology and consumer enabler sectors.