Singapore's Lighthouse Canton launches venture debt fund in India
Singapore-based investment and wealth management company Lighthouse Canton in India has resulted in the first closing of its first venture debt fund at Rs 155.4 crore. The fund, a Category II AIF, aims to raise Rs 550 crore, with an extra Rs 550 crore available as a greenshoe option. Over the following two years, the LC Venture Debt fund will invest this money in 35–40 start-ups.
This comes after Lighthouse Canton and Nueva Capital closed a Rs 300 crore fund in April 2022. The oversubscribed LC Nueva Fund makes investments in pre-series A and series A firms, with typical check sizes ranging from $1 to $5 million.
Speaking about the growing acceptance of debt capital in India amidst a funding winter, Lighthouse Canton’s Global Head of Asset Management, Sanket Sinha, said, “In more mature venture ecosystems such as the US and Europe, venture debt has risen to 15-20 per cent of the total VC funding, whereas this proportion is less than 2 per cent in India.”
“Given the growth of the venture ecosystem in India, we see tremendous opportunity for venture debt, and we expect the size of this market to grow 3-4x in the next five years,” he added. As of September 2022, Lighthouse Canton was overseeing more than $3 billion worth of assets under management (AUM) and advisory. Besides capital, the fund also serves pre- and post-monetization needs of founders, HNIs, family offices and other institutional investors. Some of its bets in India include EV financing platform Revfin, telemedicine startup Redcliffe, women’s footwear brand Monrow, used car leasing service Pumpumpum, and so on.
"Our presence in various markets uniquely positions us to work with firms with aspirations for worldwide expansion and assist them with their financing needs," said Ankit Agarwal, Director for Venture Debt at Lighthouse Canton. We are seeing strong demand for this asset class, and our investors and partners recognise the value we contribute to the ecosystem. While LC Capital India Pte Ltd is registered with the Association of Mutual Funds in India, Lighthouse Canton Pte Ltd is subject to Singapore's Monetary Authority's regulation (AMFI).
This comes after Lighthouse Canton and Nueva Capital closed a Rs 300 crore fund in April 2022. The oversubscribed LC Nueva Fund makes investments in pre-series A and series A firms, with typical check sizes ranging from $1 to $5 million.
Speaking about the growing acceptance of debt capital in India amidst a funding winter, Lighthouse Canton’s Global Head of Asset Management, Sanket Sinha, said, “In more mature venture ecosystems such as the US and Europe, venture debt has risen to 15-20 per cent of the total VC funding, whereas this proportion is less than 2 per cent in India.”
“Given the growth of the venture ecosystem in India, we see tremendous opportunity for venture debt, and we expect the size of this market to grow 3-4x in the next five years,” he added. As of September 2022, Lighthouse Canton was overseeing more than $3 billion worth of assets under management (AUM) and advisory. Besides capital, the fund also serves pre- and post-monetization needs of founders, HNIs, family offices and other institutional investors. Some of its bets in India include EV financing platform Revfin, telemedicine startup Redcliffe, women’s footwear brand Monrow, used car leasing service Pumpumpum, and so on.
"Our presence in various markets uniquely positions us to work with firms with aspirations for worldwide expansion and assist them with their financing needs," said Ankit Agarwal, Director for Venture Debt at Lighthouse Canton. We are seeing strong demand for this asset class, and our investors and partners recognise the value we contribute to the ecosystem. While LC Capital India Pte Ltd is registered with the Association of Mutual Funds in India, Lighthouse Canton Pte Ltd is subject to Singapore's Monetary Authority's regulation (AMFI).
.jpg "Innovating Legal Solutions to Safeguard your Business")
