Singapore-based private equity firm L Capital Asia, sponsored by the LVMH Group is planning to invest around $50 Mn each in selected Indian ecommerce players this year.
The PE firm plans to invest in niche online retailers which work on a differentiated model, unlike most ecommerce companies today.
Revealing the investment plans, Bijou Kurien, member of the strategic advisory board of L Capital said, “Online retail is a very attractive proposition, given the scope of growth in an emerging consumer market like India. There’s a lot of excitement in the online retail space and growth is exceeding offline retail.”
Kurien further said that there will also be a shift in the entire online market in India in the next two years. “The focus will shift from topline and discounts-driven business model to improving quality of operations,” he added.
According to the reports, L Capital has held talks and considered a few options and may make at least two-three investments this year. The minimum value of each investment will be $30 Mn to $50 Mn.
Without specifying the time frame the company reveals, at least $250 Mn worth of funds is likely to be directed to India, same as China.
Earlier, In India, L capital has invested over $100 Mn in Genesis Luxury, PVR Cinemas and Fab India. In Asian market, the company had opted bridge-to-luxury brands such as Charles and Keith, RM Williams and Seafolly for investment round.