Welcome to our ‘Fund in Focus’ series where we profile our member VC funds, underscore their investment philosophy, and highlight some of their interesting work. In this exclusive chat with Sandeep Murthy, Managing Director, Lightbox India Advisors. In this edition of Fund in Focus, Sandeep Murthy, Managing Partner at Lightbox India Advisors, reflects on the firm’s unconventional origins, deep operating engagement with founders, and its belief in building—not just backing—businesses. With India entering its “miracle years,” Lightbox is doubling down on durable consumer categories, resisting hype cycles, and staying true to its concentrated, hands-on investment strategy that values patience, governance, and long-term impact.
Fund In Focus: From Cleartrip to Governance Frameworks: How Lightbox is Doubling Down on Long-Term Value
Sandeep Murthy, Managing Director,Lightbox India Advisors
Spokesperson: Sandeep Murthy, Managing Director, Lightbox India Advisors
1. Lightbox was born out of a unique genesis—acquiring portfolios from global firms and applying a focused lens on Indian consumption. How has that origin story shaped your approach as an investor over the last decade?
Our beginnings shaped us in a fundamental way. Because we didn’t start as a traditional fund, we didn’t come in with a portfolio construction mindset. We said, let’s just invest in businesses we think are interesting and see what happens. That first phase was about curiosity, not strategy. Our first two investments, Cleartrip and Info Edge, were at very different stages—one early, one late. That gave us a broad perspective on how companies evolve and what they need at different points. But more importantly, we realised it’s not about applying a template to build a portfolio. It’s about getting deeply involved in a few companies and helping them work. That led to our belief in a concentrated approach.
There’s a study from the University of Chicago – it says funds succeed not just because of capital, but because they help build successful companies. Your reputation gets shaped by the value you add. That has stayed with us. We chose to invest time, not just money. I even stepped in as CEO at Cleartrip during a transition. That kind of involvement gives you operating context, sharpens your judgment, and helps you understand execution risk at a much deeper level.
2. You’ve often said Lightbox is not just a venture fund, but a company builder. What does that look like in practice—and how has it evolved in the Lightbox 2.0 phase?
We spend most of my time with founders, not just in board meetings, but in trenches, on calls, during late-night discussions. It’s a lonely job being a founder, and we wanted to show up without an agenda.
That translated into deep, hands-on support. At InMobi, for example, when they raised from SoftBank, I stepped in to lead corporate development. I was both part of the management team and a board member. That dual role helped us bridge the gap between strategy and execution. We institutionalised this with Lightbox hiring people with real functional expertise in HR, marketing, and design. But over time, we drifted a bit. The pressure to deploy capital made it harder to maintain that engagement model.
With Lightbox 2.0, we’re back to that core. Operating partners like Ashish Bhargava bring credibility and lived experience. Our approach is about inception, not prescription—you seed ideas, let them take root, and work alongside founders to scale them. We’ve also become more direct. We’re business-friendly, not founder-blind. That clarity matters.
3. In a fragmented economy like India’s, where only 13% is organised, how do you evaluate a company’s ability to build structure and scale sustainably?
Fragmentation in India often stems from jugaad. Doing what works in the moment. But as consumers start demanding better quality and consistency, companies need to evolve. That requires investing in design, systems, and customer experience.
Building structure is not rocket science. It’s about deliberate action. You need discipline, process, and clear accountability. Companies that embrace that mindset, instead of just winging it, are the ones that scale sustainably. It’s about moving from hope to precision.
4. You’ve spoken about India entering its ‘miracle years.’ How is Lightbox positioning itself to capture long-term value in this transformative phase of India’s growth story?
We’re going long on India’s fundamentals. That means finding consumer businesses rooted in real needs, not moonshots. We’re backing companies that use tech to organise, not just disrupt. For example, we’re not chasing the latest hype cycle. We’re focused on apparel, food, healthcare, and logistics, categories where consumption is steady, but delivery can be massively improved.
5. Lightbox has consciously made concentrated bets rather than build a large portfolio. What are the trade-offs of this strategy and how has it impacted outcomes for founders and LPs?
For founders, it means more attention, more engagement, more skin in the game. We’re not diversified—we sink or swim with our companies. That builds trust. But the trade-off is liquidity. With a broader portfolio, you can take chips off the table in stages. Our model requires patience. We wait for big outcomes. That creates tension in DPI conversations with LPs. It also insulates us from FOMO. We’re not chasing trends or jumping on hot sectors. That’s a strength, but it can make us seem out of step during boom cycles. We’re okay with that. We believe in non-consensus alpha, doing what makes long-term sense, not what’s fashionable.
6. You’ve invested in companies using tech not to disrupt, but to organise—from supply chains to commutes. How do you view the role of emerging tech like AI in traditional consumer sectors?
We’re not an AI fund. AI is a tool, not the thesis. It can enhance what we do, but it doesn’t change the core. In food, clothing, education, your product still has to be great. If AI can make it better, faster, cheaper, fantastic. But it’s an enabler, not the reason the business exists. We focus on product-first companies. AI sits behind that.
7. Are there any emerging sectors or whitespace opportunities that you’re particularly excited about as India’s consumer economy matures?
Honestly, we’re most excited by the basics. Food, clothing, education, healthcare. These are enduring needs. Look at apparel – the incumbency is low. You’re not competing with J.Crew and GAP. You’re competing with street vendors. That gives you white space to build strong brands. Preventive healthcare is another big one. In a country with low doctor-patient ratios and few hospital beds, keeping people healthy is a huge opportunity. We’re the land of yoga and Ayurveda. Can we modernise and scale that? These are practical, buildable opportunities—not speculative bets.
8. Several of your portfolio companies are on track to turn profitable. What are the biggest mindset shifts you’ve encouraged in your founders to get there?
The biggest mindset shift is simple: profitability is freedom. Founders get tired of pitching by Series C and D. It becomes a grind. The romance is gone. They know their business better than anyone, but they’re stuck explaining it to people who don’t have the time to understand. When we say, "Let’s get you to profitability," it’s liberating. You’re no longer in an existential crisis. You’re running a real business. That changes everything.
9. With growing operational expertise on the team, how is Lightbox enhancing post-investment support and corporate governance?
We now have a full framework to assess governance, a tool, an action plan, and regular check-ins. It’s like an internal audit, but focused on governance. The goal is to make being a Lightbox company mean something. If people say, "That company’s governance is solid, they must be backed by Lightbox," then we’ve succeeded. It’s good for the companies, and it’s good for us.
10. As public markets and exits start becoming real for Indian startups, what do you believe founders need to be most prepared for?
Predictability. Public markets aren’t patient. They don’t need to hold your stock while you figure it out. You need to show up with numbers, not just a story. You also need to be clear on your edge. If you’re an apparel company, tell me why your margins, growth, or retention are better than others. Don’t rely on philosophy. Show me the math. In public markets, people vote with their wallets. You have to grow up and operate like that.