Singapore-based investment firm Lighthouse Canton (LC) announced on January 16 the first closure of its first India-focused venture debt fund, raising Rs 155.4 crore.

The main body of the target fund is about Rs 550 crore, with an additional green shoe option of Rs 550 crore, bringing the total fund size to Rs 1,100 crore. The fund launch comes as startups increasingly look for funding options during the so-called funding winter.

“In more mature venture ecosystems such as the US and Europe, venture debt has risen to 15-20% of total venture funding, while in India, it is less than 2%.

The fund is part of Lighthouse Canton’s regional venture debt strategy, which has attracted participation from onshore and offshore institutions and family offices.

The company plans to invest in around 35-40 startups in the next two years, with an average check size of Rs 10-20 crore.

He said that the company’s presence in other markets allows it to work with companies with international expansion plans and helps them meet their financing needs.

In 2022, Lighthouse Canton partnered with Nueva Capital to launch LC Nueva, a venture capital fund focused on India’s Pre-A and Series A companies.

The fund was oversubscribed and successfully applied to the regulator for an additional Rs 50 crore.

Lighthouse Canton is a wealth and asset management firm with over $3 billion in assets under management and over 100 professionals in Singapore, Dubai and India.