New Delhi, July 21 -- Homegrown private equity firm Lighthouse Funds is set to hit the markets to launch its fifth India-focussed vehicle that would be larger than its fourth vehicle, as it looks to expand its assets under management to around $2 billion, at least two people familiar with the matter told VCCircle.
The Mumbai-headquartered PE firm is looking to raise Rs 5,000-6,000 crore ($519-623 million) from its limited partners (LPs) for the new mid-market fund, the people said, asking not to be named.
The fundraising plans come after Lighthouse achieved the final close of its fourth fund in late 2024, securing commitments of Rs 4,000 crore and taking its AUM above $1.4 billion.
Queries sent to Lighthouse remained unanswered till the time of publishing this article.
Founded and led by managing partners Mukund Krishnaswami, Sachin Bhartiya and Sean Sovak, Lighthouse has been investing in India since 2006 and is currently deploying capital from its fourth fund.
The firm has backed companies such as Hunger Inc, which operates The Bombay Canteen, Kalki Fashion and Knest Manufacturers. Some of its well-known investments include Fabindia, Wow! Momo and Nykaa.
While Lighthouse has yet to announce a fresh bet this year, it has been busy monetising several of its previous investments.
Last year, VCCircle reported that the firm was planning to sell 70% of its remaining stake in mattress maker Duroflex Ltd through the company's proposed initial public offering (IPO). Duroflex, which got SEBI's approval for its IPO earlier this year, had received investment from Lighthouse's third fund.
Over the past few years, the PE firm has delivered several other exits from its third fund.
In 2025, it sold part of its stake in Vadodara-based Shaily Engineering Plastics Ltd across multiple tranches, clocking an internal rate of return (IRR) of around 60% in rupee terms.
In 2023, it sold its remaining stake in snacks maker Bikaji Foods International, generating a $150-million exit. A year earlier, it scored a blockbuster partial exit from omnichannel beauty retailer Nykaa.
Lighthouse's latest plans for a fundraise come amid several private equity firms tapping investors for new funds.
Last week, VCCircle reported that Mumbai-based financial services company Avendus Capital is aiming to mark the final close of its third fund at around Rs 1,800 crore by the end of July.
In March, VCCircle reported that Equirus Alternatives, the alternative investments arm of Equirus Group, was preparing for the first close of its maiden private equity fund.
In January, VCCircle reported that 2380 Capital, a mid-market private equity firm launched by two former ADV Partners executives, had hit the road to raise its debut India-focussed fund.
Further, Motilal Oswal Alternates hit the final close of its fifth PE fund in December last year, while ChrysCapital closed its tenth India fund at $2.2 billion in November, setting a record for the largest sector-agnostic private equity fund raised by a firm in India.
Published by HT Digital Content Services with permission from VC Circle.