Lighthouse Canton to launch ₹250 cr fund to back portfolio winners

"We plan to invest in 15-20 high-potential companies from the LC Nueva Fund. These companies have demonstrated exceptional growth and have significantly enhanced their operating metrics," CEO and co-founder Shilpi Chowdhary told Mint in an interview. The investment firm plans to complete deploying capital in about two years from closing.

"The idea is that these are good winners that can be a 10x or multi-baggers from here.. the aim is keep reinvesting on these (companies) because this is a competitive and challenging space as all your investments are not going to pay always," he said, without disclosing any details of companies.

However, Chowdhary added that these companies have achieved successful up rounds, which "showcases their progress and potential".

With an average ticket size of about $2 million, the LC Nueva Momentum fund will be an India-focused fund and may also look at other similar companies where there could be secondaries available.

About LC Nueva 

The India-focused LC Nueva fund which is about $42 million in size, is a joint venture between Lighthouse Canton and Nueva Capital and has invested in about 33 startups so far. This fund primarily invests in pre-series A or series A rounds with an initial ticket size of $1-2 million. 

While the investment firm has a sector-agnostic approach, it has a proclivity towards health-tech, consumer-tech, fintech & education-tech businesses.

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Meanwhile, the venture debt arm, which has raised over $35 million so far, aims to provide working capital solutions to about 35-40 companies in India and Southeast Asia at stages Series A and above with a ticket size ranging between $1 million and $5 million. Under this arm, it has provided debt to prominent Indian startups such as Rentomojo, Blusmart, Groyyo and Rupeek.

Founded in 2014, Lighthouse Canton offers asset management services across private and public markets alongside wealth advisory capabilities to private and institutional investors. In the last four years, it has consistently increased its exposure to India while it also has offices in other regions including Dubai and its headquarters–Singapore.

"India continues to be one of those markets the whole world is very closely looking at due to its growing economic potential. India has the right kind of ingredients for long-term growth.. and hopefully for the next 5 to 10 years, this augurs well for the country," Chowdhary said, adding that robust economy, favorable policies frameworks and a reasonably young population are further driving the optimism.

Chowdhary, who held senior leadership positions at Citigroup and Credit Suisse, also remained bullish about India's thriving startup culture as it fosters innovation within the country. 

He added that growth rates in private markets are much more than in the public markets. Last month, Lighthouse Canton also launched a global innovation fund that looks to invest in around 30-40 companies poised for growth in the GenAI space.

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