In a major vote of confidence in India’s rising consumer economy, the International Finance Corporation (IFC) has proposed an equity investment of up to $30 million in the newly launched L Catterton India Fund I, alongside a co-investment envelope of another $30 million under delegated authority.

This isn’t just another private equity play—it’s a bold step toward fueling India’s next generation of consumer-focused companies. With a target corpus of $600 million, Fund I aims to back 7 to 9 mid-market businesses with high-growth potential. The investment sizes will range from $25 million to $150 million per company, signaling a serious commitment to long-term value creation.

At the heart of this new venture is a familiar face in India’s business landscape—Sanjiv Mehta, former CEO of Hindustan Unilever (HUL), one of the most trusted names in Indian households. In March 2024, Mehta teamed up with global investment giant L Catterton to set up this India-focused fund. His deep understanding of Indian consumers, combined with L Catterton’s global experience in consumer-focused investing, offers a potent mix of insight and execution capability.

The fund’s investment thesis is sharply focused on four consumer-centric segments:

• Food and Beverage
• Consumer Services (including Healthcare)
• Retail and Restaurants
• Consumer Brands

These are sectors that are not just expanding but evolving rapidly, driven by India’s young, aspirational population, urbanization, and rising disposable income.

Anjana Sasidharan, a seasoned investor and L Catterton partner leading India investments will co-lead the fund with Mehta. They’ll be closely aligned with the Asia leadership team, headed by Scott Chen, the firm’s Asia Managing Partner since 2019.

This isn’t L Catterton’s first foray into India. The fund already counts names like Sugar Cosmetics, Farmley, Drools, Impresario (the parent company of Social), and even a minority stake in Jio Platforms among its India portfolio. The new fund aims to build on this foundation by identifying the next wave of scalable, consumer-first businesses that can shape India’s economic future.

For the IFC, this is more than just an investment—it’s a strategic push to empower job creation, support entrepreneurs, and drive sustainable consumer growth in one of the world’s fastest-growing economies.

As India’s middle class expands and tastes evolve, the real winners will be the companies that understand and deliver on those aspirations. And with Mehta at the helm, backed by L Catterton’s muscle and IFC’s support, Fund I is gearing up to do just that.