Mid-market private equity firm Lighthouse Funds has invested Rs 225 crore ($26.4 million) in Mumbai-based direct-to-consumer premium bridal and festive wear brand Kalki Fashion Pvt Ltd.
The investment will enable the Mumbai-based fashion brand to expand its retail presence in domestic and international markets.
“This partnership will enable us to scale our retail presence in domestic and international markets, enhance supply chain efficiency, and continue to invest in new product development and customer experience to serve our customers,” Saurabh Gupta, founder and CEO of Kalki Fashion, said in a statement.
Lighthouse Funds, which manages over Rs 12,000 crore in assets under management, has picked up a large minority stake in the brand amid expectations of discretionary spending in the premium lifestyle segments, said a person close to the development.
The Rainmaker Group acted as the exclusive advisor on the deal.
According to an analyst, the premium segments within the consumer sector are likely fetching a valuation multiple of 3-5x annual revenue.
According to the person cited above, Kalki Fashion clocked around 50% growth in its revenue to around Rs 500 crore currently. This would put its valuation anywhere Rs 1,500 crore and Rs 2,500 crore.
“Kalki has built a strong brand in the premium occasion wear segment, focusing on quality and craftsmanship,” Anshul Jain, managing director at Lighthouse, said in the statement.
Some of the companies that Lighthouse Funds has previously invested in include Bikaji Foods, Cera Sanitaryware, Dhanuka Agritech, Duroflex Mattresses, Fabindia, Kama Ayurveda, Kushal’s Retail, Nykaa, Parsons Nutritionals, Poly Medicure, Safari, Shaily Engineering, Stylam Industries, Tynor Orthotics, Unibic Foods and Wow! Momo, among others.
In November 2024, VCCircle had reported that Lighthouse Funds closed its fourth fund at Rs 4,000 crore ($475 million), exceeding its target of Rs 2,800 crore.
The fourth fund has already deployed 30% of the corpus, with Kalki Fashion being its fifth investment pick. The new portfolio includes fashion jewellery retailer Kushal's, luggage and travel accessories brand Safari, contract manufacturer Parsons Nutritionals and medical consumables firm Poly Medicure.
