With the exit from its first investment, Janalakshmi Financial Services, venture capital fund Lok Capital is set to broaden its suite of investments.
Lok Capital, which focuses on social enterprises, is close to finalising deals in the education and retail sectors soon.
The fund invests companies serving the bottom of pyramid segment, and is evaluating companies working on vocational training/education and a company that works with rural artisans to promote their products on the retail front, according to Mr Vishal Mehta, Co-founder and partner of the fund.
The fund has hitherto invested primarily in the finance segment.
“Going forward, the fund will look at more companies in sectors like healthcare and education sectors,” Mr Mehta told Business Line .
“There are segments within these sectors, like primary healthcare or remedial education and vocational training, which have potential to impact people,” he pointed out.
The company will also look at enterprises in the employment space such as the Bangalore-based rural BPO RuralShores, Lok's only investment away from financial services.
“While we will not move away from financial services, we will look at more companies in these sectors,” he said.
However, even within the financial services sector, Lok will look at funding companies innovating in the existing model such as enterprises facilitating mobile-based payments, Mr Mehta said.
“We will not take up single product vanilla model companies anymore, but at enterprises that offer a range of products/services,” he pointed out. A year from now, Lok will also launch its third fund Lok Capital III which will focus on businesses that require small amounts of funding, businesses that have regional focus to touch people in the lower end of the pyramid.