India’s startup market is attracting attention from both global venture investors and large consumer companies. Lightspeed is reportedly targeting $250 million for a new India-focused fund centred on early-stage artificial intelligence startups.

At the same time, Nykaa has joined hands with BOLD, L’Oréal’s corporate venture capital fund, to invest in high-growth Indian beauty and personal care brands.

The two announcements are different in style. Lightspeed is creating a dedicated pool of venture capital for new technology companies. Nykaa and BOLD are combining money with beauty expertise, retail access and market knowledge.

Lightspeed’s proposed $250 million AI fund

Lightspeed is targeting $250 million for Lightspeed India Partners V, according to TechCrunch. The fund has reportedly secured commitments for around 80% of its target, although the final close has not yet been announced.

The proposed vehicle will focus on early-stage Indian AI startups. This means the fund could invest when companies are still developing their first product, testing their technology or finding their initial customers.

Lightspeed’s previous India fund was valued at $500 million and was raised in 2022. The smaller size of the new fund suggests a more focused strategy, with AI taking a larger place in the investment plan.

What Lightspeed wants to support

The fund could back startups building AI software, enterprise tools, developer products, healthcare solutions, financial technology and applications for Indian languages.

For example, a young company developing an AI tool for small retailers may need funding for engineers, cloud computing, product testing and customer acquisition. Early-stage capital can give such a startup enough time to develop its product before trying to raise a larger round.

Lightspeed’s aim is also linked to India’s growing pool of engineers, entrepreneurs and technology users. Startups can build for India’s large market and later expand into other countries.

The fund will compete with other investors such as Accel, Peak XV Partners, Blume Ventures and General Catalyst, all of which have shown interest in Indian technology and AI companies. The challenge will be finding startups with real products and customers, rather than businesses using AI only as a marketing label.

Nykaa and BOLD target Indian beauty brands

Nykaa and BOLD have announced a collaboration to jointly invest in Indian beauty and personal care brands. BOLD stands for Business Opportunities for L’Oréal Development and was launched by L’Oréal in 2018 as a corporate venture capital fund.

Nykaa was founded in 2012 by Falguni Nayar. It has grown from a digital beauty retailer into a wider beauty and lifestyle platform with online channels, physical stores and private-label products. Nykaa’s official company profile describes the company’s expansion across beauty, fashion and business-to-business distribution.

The partnership will focus on minority investments. This means the companies will take a smaller ownership stake while founders retain operational and creative control over their brands. Neither company has disclosed the total investment pool, cheque sizes or the names of the first startups selected. L’Oréal’s announcement confirms that the partnership will combine capital, mentorship and beauty expertise.

Why the Nykaa and BOLD partnership matters

A beauty startup often needs more than funding. It may require help with product development, packaging, testing, pricing, distribution and brand building.

Nykaa, an online marketplace for women, can offer knowledge of Indian shoppers, online discovery and retail distribution. L’Oréal can contribute global beauty experience, research knowledge and international industry connections.

This could help a skincare, haircare or cosmetics brand move from a small online business to a wider retail operation. The partnership will compete with beauty-focused investors, brand incubators and programmes such as Nykaa’s earlier BEAUTY&YOU India initiative with Estée Lauder’s New Incubation Ventures.

Conclusion and key takeaways

Lightspeed’s proposed fund is aimed at discovering India’s next generation of AI companies. Nykaa and BOLD are taking a more industry-specific approach by supporting beauty brands with both money and practical help.

For founders, these moves show that investors are looking for specialised opportunities. AI startups may benefit from early technology capital, while beauty companies may gain from strategic investors that understand customers, products and distribution.

Key takeaways –

• Lightspeed is targeting $250 million for a new India-focused AI fund.
• The proposed fund will focus mainly on early-stage startups.
• Nykaa and L’Oréal’s BOLD will jointly invest in Indian beauty and personal care brands.
• The Nykaa-BOLD partnership will take minority stakes.
• The investment amount, cheque size and first startup names have not been disclosed.
• Nykaa was founded in 2012 by Falguni Nayar.
• BOLD was launched by L’Oréal in 2018.