Bengaluru/Mumbai: Private equity major Lighthouse Funds is looking to exit its six-year-old bet in footwear maker Aqualite Industries, and it has already started early talks with prospective investors, two people familiar with the matter told . Lighthouse—that had invested 250 crore in 2018 from its third fund—for a minority stake (16.4%) in the company, is now looking to cash out its investment, the first person cited above said.
“Bankers will be appointed soon, and a formal process will begin. At present, the company has held initial talks with other PE funds to gauge their interest," the person added, requesting to remain anonymous. Lighthouse—a leading mid-market private equity firm that typically focuses on growth investments in India’s consumer sector—includes prominent brands such as Nykaa, Bikaji Foods, Tynor Orthotics, and Fabindia, among others, in its portfolio.
It is also looking to cash out of its investment in Tynor, reported on Tuesday. Growth for Aqualite has been slow after the company's performance was hit by the effects of the pandemic. In FY23, the company managed to clock 922 crore in revenue, up from 744 crore a year earlier, as per a report by ratings agency in September 2023.
The report added that there could be a marginal increase in 2024, with revenues expected in the range of 950-1,000 crores, driven by the company's shift in focus to prioritising sales in higher-margin segments. In recent years, the company's profitability has been unde.
