Singapore-headquartered pan-Asian private equity firm L Capital Asia is planning to invest in the Indian e-commerce space.
The LVMH Moët Hennessy Louis Vuitton (LVMH)-backed fund has decided on an outlay of $50 million for each investment in “niche online retailers that have differentiated models” or in the old traditional Indian companies that have “lost direction” and are seeking to revamp , reported The Economic Times.
“Online retail is a very attractive proposition, given the scope of growth in an emerging consumer market like India,” said Bijou Kurien, member of the strategic advisory board of L Capital, as quoted by the Indian business daily.
According to him, the Indian e-commerce sector is likely to change in the next two years with focus shifting from “topline and discounts-driven business model to improving quality of operations.”
L Capital is said to be in talks with few players in the industry and might make two to three investments (of $30 million to $50 million, each) during the current fiscal.