L Catterton To Launch India-Focussed Consumer Fund

SUMMARY

Mehta will helm the formation of the new India-focused fund to invest in consumer facing companies and will serve as its executive chairman

The JV will likely acquire both majority and minority stakes in Series B and above consumer businesses, with ticket sizes ranging between $25 Mn to $150 Mn

The partnership will leverage L Catterton’s network and capabilities and Mehta’s experience in the consumer space to “create a compelling offering for investors”

Global investment firm L Catterton on Thursday (March 28) said that its Asia arm has inked an agreement with former Hindustan Unilever (HUL) executive Sanjiv Mehta to float a new India-focussed investment vehicle.

Under the pact, Mehta will helm the formation of a joint venture focused on investing in Indian consumer facing companies. He will also serve as the executive chairman of the JV, starting April 4.

A source told Livemint that the JV will predominantly seek India-based investors and will deploy the raised capital in a coordinated manner with L Catterton’s pan-Asia fund. The person further added that it will likely acquire both majority and minority stakes in Series B and above consumer businesses with ticket sizes ranging between $25 Mn to $150 Mn.

The LVMH (owner of Christian Dior)-backed investor also said that Mehta will be involved with L Catterton Asia and the firm’s other global fund platforms. As per the company, the partnership will leverage the investment firm’s global network and capabilities and Mehta’s experience in the consumer space to “create a compelling offering for investors”.

“His partnership will deepen our in-market network, insights, and capabilities and we look forward to further growing our franchise in India and throughout Asia,” added the company.

Terming the India-focussed JV a strategically important initiative, the investment firm added that the JV will look to capitalise on the country’s burgeoning population and long-term growth opportunities.

“I am particularly excited to join and support L Catterton’s India and Asia team as the firm deepens its commitment to the region…With L Catterton’s global reach, investing expertise in the consumer sector, and familiarity with the region,… the firm is very well positioned to succeed. I look forward to working closely with the team and helping to capitalize on the significant opportunities ahead,” said Mehta.

Chiming in, L Catterton Global’s co-CEO Michael Chu said, “We are thrilled to partner with Sanjiv, and to work together to create a differentiated partnership that leverages his deep understanding of the Indian consumer, in combination with our disciplined and proven category-first and operating-centric approach to investment and value creation”.

With more than three decades of experience under his belt, Mehta is a veteran in the Indian FMCG space and previously served as a member of Unilever Group’s global executive management team between 2019 and 2023.

On the other hand, L Catterton is a consumer-focused investment firm that manages nearly $35 Bn of equity capital across three platforms namely private equity, credit, and real estate.

It claims to have made more than 275 investments till date and counts Indian names such as Drools, SUGAR Cosmetics, and FabIndia among its portfolio.

The announcement comes at a time when the Indian consumer internet space is witnessing renewed interest from investors.

Earlier this month, D2C innerwear startup Bummer bagged INR 9.25 Cr in its pre-Series A1 funding round led by Gruhas Collective Consumer Fund. Prior to that, Ayurveda Experience raised $27 Mn in a funding round led by Jungle Ventures while D2C beauty and personal care brand Foxtale raised INR 119 Cr from Panthera Growth Partners and others.

As per Inc42, India’s direct-to-consumer (D2C) market is projected to reach a market size of $100 Bn by 2025.