# Lightbox Pivots to Later-Stage Deals to Secure Fourth Fund The VC firm shifts focus toward revenue-scale companies to prove repeatable profitability models. - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-10-15 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/ebca0e33-b995-47fe-857a-02a52a838353 ## Strategic Shift in Focus Mumbai-based Lightbox is transitioning its investment strategy toward later-stage companies with significant revenue scale. Founder Sandeep Murthy aims to reduce reliance on aggressive follow-on funding rounds. This pivot is designed to establish a repeatable path to profitability, ensuring the firm can demonstrate financial stability before launching its fourth investment fund. ## Portfolio Performance Metrics The firm has historically invested $400 million in consumer businesses. Currently, four of its nine core portfolio companies are fully profitable, with four more expected to reach profitability by year-end. Murthy emphasizes that funding volume is not a proxy for product-market fit, prioritizing sustainable business models over rapid, capital-intensive growth. ## Successful Exit Benchmarks Lightbox recently achieved its first exit from its third fund through the personal care brand Nua. The transaction generated a 6.7x multiple and a 30% internal rate of return. Following a $50 million Series C round led by Peak XV Partners and Filter Capital, Lightbox retains a 20% stake in the company. ## Market Context and Discipline The Indian startup ecosystem saw $18.3 billion raised across 1,660 rounds through October 2026. Following the high-valuation cycles of 2020-2021, investors are increasingly demanding improved unit economics. Lightbox is responding to this shift by avoiding overvalued businesses and focusing on companies that can sustain operations without constant access to external capital injections. ## Operational Investment Boundaries Despite the shift in stage, Lightbox remains committed to the consumer sector. Murthy explicitly stated that the firm will not expand into deep technology, space, or defense sectors. He noted that selling to government entities requires a fundamentally different skill set and operational approach compared to their established consumer-facing business expertise. ## Managing Portfolio Challenges The firm has navigated difficult outcomes with companies like PayMate and Melorra. PayMate faces financial hurdles, including salary delays and the withdrawal of Middle East operations. Lightbox has no remaining capital from the original fund to provide additional support, highlighting the risks inherent in the firm's historical early-stage investment portfolio. ## Distressed Asset Transactions Melorra recently underwent a distress-related transaction involving Senco Gold. The acquirer purchased a 68% stake in August Jewellery, the parent company of Melorra, for ₹68 crore. This exit reflects the broader market trend where investors are forced to manage distressed assets as the capital environment for high-burn startups continues to tighten. ## Future Fundraising Objectives Lightbox's primary goal is to prove that its portfolio management approach is repeatable. By focusing on late Series A and early Series B companies, the firm intends to build a track record of financial performance. This evidence is essential for securing investor confidence and capital commitments for their upcoming fourth fund. ## Sources covering this story - https://www.livemint.com/companies/start-ups/lightbox-focuses-on-portfolio-profitability-as-it-eyes-more-exits-new-fund-11792048670417.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._