Mumbai, April 6 -- Paragon Partners, which has backed consumer brands such as Chai Point and mCaffeine, has lined up exits for its earlier investments as it prepares to launch its third mid-market PE fund, targeting a corpus of Rs.1,500 crore to continue investing in profitable Indian companies.

"We have received Sebi (Securities and Exchange Board of India) approval to raise a Rs.2,000 crore fund, which includes a green shoe option, but our ideal size would be Rs.1,200-1,500 crore. That's the sweet spot where we can maintain return discipline while pursuing the kind of opportunities we want to do in the mid-market space," co-founder and senior partner Siddharth Parekh told Mint in an interview.

The firm will begin fundraising in the ne...