India’s Lighthouse Funds is in talks to raise $400 million for a new fund, a senior executive has told Reuters, in what will be the private equity firm’s biggest fundraise that targets brands rapidly growing mainstream in the country.

Lighthouse has raised over $450 million over the years and invested in Indian ventures including popular online beauty retailer Nykaa FSNS.NS and ethnic clothing and home accessories brand Fabindia.

Lighthouse is in talks with potential investors to raise its fourth fund, private equity fund partner Mukund Krishnaswami told Reuters in an email.

The latest fund will be Lighthouse’s largest to date, following its initial fundraising of $100 million in 2009, followed by $135 million and $230 million in two funds in 2015 and 2019, respectively.

“We are seeing good interest and hope that the strength of the portfolio and the performance of Funds II and III are good tailwinds for these discussions,” Krishnaswami said, declining to name the investors the fund was in talks with.

A person directly involved in the talks said the new Lighthouse fund is expected to close later this year.

Some existing investors will increase their exposure in the upcoming fund, while Lighthouse will also bring in new investors, added the source, who declined to be named due to the private nature of the discussions.

Current investors in Lighthouse include the World Bank’s International Finance Corporation and the UK government’s development finance arm CDC.

The private equity firm operates in the middle market segment in India, where it typically invests between $15 million and $30 million in upcoming consumer brands. Its investments cover sectors such as affordable shoes, snacks, clothing and skincare.

Funds such as Lighthouse are betting big on the consumer space as they target India’s fast-growing affluent client class, even as the sector faces growing inflationary pressures.