Global private equity behemoth L Catterton has achieved the first close of its debut India-focused consumer fund at $200 million (around ₹1,763 crore). This is indicative not only of investor confidence in India’s fast-growing consumer market but also a deepening commitment from the firm itself.
Fund Structure and Ambition
The India vehicle, named L Catterton India Fund I, was launched last year in partnership with Sanjiv Mehta, former chairman and managing director of Hindustan Unilever. The fund has set a base target of $400 million, along with a green-shoe option of $200 million, allowing it to potentially expand to $600 million.
The fund is designed to provide growth capital to mid-sized consumer businesses across India, particularly those with scalable business models and strong brand-building potential.
Backing From Global Investors
Investor participation in the first close includes commitments from the International Finance Corporation (IFC), the private-sector arm of the World Bank, as well as high-net-worth clients from Kotak Private, the wealth management arm of Kotak Mahindra Bank.
According to IFC filings, the institution proposed an equity investment of up to $30 million, along with a delegated co-investment envelope of an additional $30 million. Importantly, L Catterton’s own investment in the fund will remain capped at 19.9% of the total corpus, ensuring a balanced governance structure between general and limited partners.
Investment Focus and Strategy
The India fund will focus on seven to nine mid-market companies, targeting investment sizes ranging between $25 million and $150 million. The strategy spans across high-growth consumer segments such as:
- Food and beverages
- Healthcare and consumer services
- Retail and restaurants
- Branded consumer products
The fund is also expected to leverage L Catterton’s global expertise in scaling consumer brands, offering not just capital but also operational insights, strategic partnerships, and access to international markets.
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First Bet: Farmley
L Catterton India Fund has already deployed capital into its first portfolio company, Farmley, a direct-to-consumer healthy snacking brand. Farmley recently raised about $40 million in its Series C round, with L Catterton playing a central role in the investment.
The move into the healthy-snacking segment reflects the fund’s emphasis on wellness-driven and branded consumer trends, aligning with India’s growing demand for premium, nutritious packaged food products.
Leadership and Governance
The India arm of L Catterton is led by an experienced team. Sanjiv Mehta serves as Executive Chairman, bringing decades of consumer-sector expertise from his leadership at Hindustan Unilever. Alongside him, Anjana Sasidharan and Vikram Kumaraswamy serve as co-heads of the India operations, overseeing deal sourcing, execution, and portfolio management.
Global Strength, Local Commitment
Founded in 1989, L Catterton today manages approximately $37 billion in assets across private equity, credit, and real estate. Globally, it has invested in more than 275 companies, including iconic names like Peloton, Birkenstock, and Restoration Hardware.
In India, its portfolio already includes notable brands such as Sugar Cosmetics, Drools, FabIndia, PVR, and Jio Platforms. These investments demonstrate the firm’s longstanding confidence in Indian consumption-led growth stories.
Why India, Why Now
The launch of this India-specific fund comes at a time when the country’s consumer market is undergoing structural transformation. Rising disposable incomes, rapid urbanization, and increasing brand-consciousness are driving a shift toward premium, healthier, and organized consumer categories.
Industries like packaged snacks, beauty and personal care, healthcare services, and retail are seeing strong demand from urban and semi-urban consumers. The healthy snacking segment, where Farmley operates, is expected to grow quickly in the future given changes in dietary preferences and lifestyle choices.
Competitive Landscape
L Catterton’s India fund is launching in an environment where multiple private equity and venture capital firms are focusing on consumer opportunities. In July, for instance, Atomic Capital closed its maiden fund at ₹400 crore, targeting consumer-tech and consumer-enabler startups. Similarly, firms like Venturi Partners have also announced India-related funds aimed at tapping consumption-led growth.
This competitive landscape highlights the growing attractiveness of India’s consumer sector for both early-stage and growth-stage investors.
Outlook
With $200 million already raised and a target of $600 million, L Catterton India Fund is well on its way to becoming one of the largest mid-market consumer-focussed private equity funds in the country. Success will depend on the fund’s ability to find and scale emerging category leaders in a sustainable way while generating attractive returns in the face of increasing competition.
Given L Catterton’s global expertise, revenue track record, and India’s positive consumer growth dynamics, it is fair to expect the fund’s to be a major contributor in shaping the next generation of Indian consumer brands.
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