New Delhi, July 16 -- India-focussed private equity firm Lok Capital, which invests in early- to growth-stage, high-impact and technology-enabled businesses, has roped in a returning overseas investor as a limited partner (LP) for its fifth investment vehicle, VCCircle has learned.
The firm, which is targeting a corpus of $250 million (Rs 2,408 crore) for Lok Fund V, has received a commitment of $15 million (around Rs 144.5 crore) from the Dutch entrepreneurial development bank FMO at the vehicle's first close, according to FMO's disclosures reviewed by VCCircle.
FMO said its commitment is aimed at supporting the fund's fundraising and helping bridge the financing gap toward its target corpus.
The development comes after VCCircle reported that the fund had lined up commitments of up to €75 million from the European Investment Bank (EIB) and $20 million, along with an additional $20-million co-investment envelope, from the International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group.
Lok Fund V will invest in 10-12 early- to growth-stage companies across financial services and climate and sustainability. Financial services will account for the majority of the portfolio, spanning lending, climate finance, non-credit financial services and fintech, while climate-focussed investments will target businesses in sustainable agriculture, conscious consumption and sustainable business solutions.
Founded in 2006, Lok Capital has steadily expanded the size of its funds over the past two decades. It raised about $22 million for its maiden fund, followed by a $65-million for its second and $90-million for its third fund.
The firm later launched Fund IV with a target corpus of $150-180 million, broadening its investment strategy beyond financial inclusion to include technology-enabled businesses trying to solve for productivity and inclusion.
Its portfolio includes companies such as MoneyView, Veritas Finance, Aquaconnect, Marut Drones, Lakshmitra Finance, LiveWell, Seeds Fincap and SuperBottoms.
The development finance institution FMO had previously committed $20 million to Lok Capital's fourth fund.
Beyond Lok Capital, the Dutch development bank has also invested in vehicles such as GEF Capital Partners' South Asia Growth Fund III, Omnivore Agritech & Climate Sustainability Fund III, EverSource Capital-managed Green Growth Equity Fund and Morgan Stanley-managed North Haven India Infrastructure Fund.
Published by HT Digital Content Services with permission from VC Circle.