Private Market Funds

LC Venture Debt Fund

Capital to scale

about lc venture debt fund

The Fund seeks to empower early and growth stage companies in India and South East Asia, providing them capital to scale without significantly diluting equity. The region's venture debt market has the potential to scale up by 4 - 5x over the next few years. The Fund presents investors a unique opportunity to participate in a fast growing venture debt segment.

$100mn

Fund size

20-30 companies

Portfolio Target

industries

Portfolio Companies

industry
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Pumpumpum
Pumpumpum
NCR
Consumer
Pre Series A
Saveo
Saveo
Bangalore
Health-tech
Series A
LoanTap
LoanTap
Fintech
Rentmojo
Rentmojo
Other India
Consumer
Connect & Heal
Connect & Heal
Health-tech
Zolostays
Zolostays
Other India
Proptech
BluSmart Mobility
BluSmart Mobility
Other India
EV
International Battery Company
International Battery Company
Other India
EV
Amber
Amber
Other India
Consumer
Groyo
Groyo
Other India
B2B
Believe
Believe
Other India
Consumer
MyShubhLife
MyShubhLife
Other India
Fintech
ABI Health
ABI Health
Other India
Health-tech
ShopUp
ShopUp
Other India
B2B
Rupeek
Rupeek
Fintech
Eupheus Learning
Eupheus Learning
Other India
Edu-Tech
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features

Why this fund

Provide senior-secured loans, with an equity upside, to 35 - 40 companies at stages Series A and above with a ticket size of US$1 to US$5 million.

Managed by experienced credit professionals with combined experience of over 25 years in institutions such as IFC, GIC, Deutsche Bank and with investment and asset management experience of over US$1 billion in Asia.

Sector-agnostic mandate with focus on partnering with companies with strong business fundamentals and run by passionate founders.

insights

The Venture Debt Opportunity

Venture Debt in Mature Markets

In older venture ecosystems such as US and Europe, Venture Debt has been in the range of 15-20% of total VC funding​

  • In US, c.US$30b has been loaned to VC-backed companies during each of the past three years. On a steady-state level (2021 year being an exception due to record VC funding), venture debt has been 18-20% of the total VC funding in US. ​
  • Of the total venture debt loaned, tech startups have attracted c.75% of overall funds.
  • Venture debt has grown at an extremely rapid pace in Europe since its introduction in the late 1990s.
  • In line with the US market, venture debt in Europe forms a considerable share as a % of VC financing and accounts for an average of 15% of the total VC funding. ​
The Opportunity in India & Southeast Asia

Venture debt in India and SEA is a more recent phenomenon – it is highly underpenetrated and will grow at a rapid pace on back of rising share (as a percentage of VC funding) and higher VC inflows over the next 5 years​

  • Venture debt entered relatively late in India, in the year 2015, and remains significantly underpenetrated, compared to US and Europe markets.
  • 2020 was a breakout year for venture debt in India when the total venture debt funds raised jumped 2x to c.US$400m.​
  • The estimated venture debt market opportunity in India is US$3-4b based on current VC funding rate.
  • Venture debt in SEA emerged in 2015 boosted by efforts of the Singapore Government locally.​
  • Data is scarce on venture debt activity in SEA but is expected to be in line with Indian market given the similarities in venture funding activity.​
  • Given the above, the estimated venture debt market opportunity in SEA is US$2.5-3b based on current VC funding rate.​

Team

Sanket Sinha

Portfolio Manager, LC Supply Chain Credit Fund

Sanket has over 10 years of experience during which he co-founded a fintech venture, WealthPack (later acquired by Edelweiss), which was a personal finance application aggregating customer’s accounts in real time. Before that, he was a founding employee and Head of Portfolio and Credit at X10 Financial Services, a Non-Banking Financial Company (NBFC) which provided supply chain financing to SMEs in India.

Ankit Agrawal

Portfolio Manager, LC Venture Debt Fund

Ankit has over 11 years of experience focused on investments across the capital stack (private equity, long term and structured debt). Prior to joining Lighthouse Canton, Ankit has led and managed equity and debt investments in his roles with the International Finance Corporation (IFC), GIC, and the Piramal Group. He has overseen portfolios and transactions of over US$500mn in various sectors including manufacturing, agribusiness, hospitality, logistics, real estate, healthcare and more.

Neelasksh Portrait

Neelaksh Arora

Investment team, LC Venture Debt Fund

Neelaksh has over 6 years of experience in investments and financial consulting. Prior to joining Lighthouse Canton, he has executed new investments across healthcare delivery, pharmaceuticals and life sciences and facilitated financial due diligence across diverse sectors like hospitality, tourism, food and beverages while working with Quadria Capital and KPMG. In his last stint with Cred Avenue (Yubi) he facilitated corporate debt solutions for corporates and startups​.

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