ESG: The Blueprint for Future-Ready Businesses

☕🗞️ Good morning! Welcome to The Brief, Edition #14

This week, we're exploring the future of investing. While ESG has found its way into corporate boardrooms over the past decade, lately both companies and investors, especially in the US, have been re-evaluating priorities with regard to formal ESG programmes. We talk about why ESG should not be de-prioritised and Lightbox’s razor-sharp focus on integrating ESG into the firm’s investment approach.

Before we dive in, a quick introduction to who we are.

Lightbox is a Mumbai-born venture capital firm focused on technology-led consumer businesses. Over the past decade we’ve employed a concentrated portfolio construction and deep operational engagement to enable our portfolio companies and limited partners to navigate this market.

India is moving steadily towards becoming a $10 trillion economy, driven by rising consumption and digital adoption. We believe we are uniquely positioned to offer a front-row seat to the most important shifts in the country’s consumer markets. If you’re a global capital allocator, family office, UHNI, or strategic investor looking to participate in the India opportunity — this newsletter is for you.

Let’s get into it.

📡 Signals

ESG is not Philanthropy. It’s Strategy

Environmental, social and governance (ESG) principles are no longer optional ideals. They’re pre-requisites for sustaining life and business. If we accept that premise, the next question becomes: how do we integrate that belief into how we build companies? Because the old model, which externalizes harm and expects someone else to clean it up, no longer works.

Consumer behaviour is already moving in this direction. The next wave of Indian consumers is more aware, more informed, and more discerning. They want to know where their products come from, who made them, and what impact they have on the world. When startups ignore these expectations, they risk falling behind.

A simple example: Lightbox portfolio company Rebel Foods was caught off guard when India moved to restrict single-use plastic. If they’d built for sustainability from day one, they could have been ahead of the curve and not scrambling to adapt.

While globally there is some backlash against the institutionalisation of ESG, there are positive signs in India. A recent Standard Chartered study found that 93% of Indian HNWIs are eager to invest in a way that contributes to a healthier planet.

At Lightbox, ESG is foundational. We don’t invest in companies that create negative environmental externalities. But we also don’t stop at risk avoidance. In fact, we look for businesses that are positively aligned by design. For companies like Cityflo and Bombay Shirt Company, for instance, ESG is  embodied in their operating model.

We’ve institutionalized the UN’s Sustainable Development Goals (SDGs) across our portfolio. Every company reports quarterly on its progress. It's a structured way to quantify, track, and improve outcomes. The sooner companies stop treating social or environmental investments as cost centers, the faster they will benefit from the competitive advantages, especially when future growth depends on winning the trust of a more conscious consumer and operating within stricter regulatory regimes.

Some stakeholders will contribute through dedicated CSR or philanthropic capital and that too is critical. These efforts help incubate new ideas, fund early-stage solutions, and build awareness. But for systemic change, ESG must be embedded into the core business logic.

Ultimately, entrepreneurs don’t need to be persuaded to do the right thing. Most already want to — they just need the tools, frameworks, and incentives to execute. With the right support, ESG becomes less of a compliance exercise and more of a strategic lever.

📰 News

Lenskart IPO; EatClub Bags $22M; Reliance's Acquisition Spree

Lenskart Files for Mega IPO

Eyewear giant Lenskart has filed its draft red herring prospectus (DRHP) with SEBI for a potential IPO, aiming for a valuation of $8–9 billion. The company plans to raise ₹2,150 crore in fresh capital, while existing investors, including SoftBank and Kedaara Capital, will sell 132.28 million shares. This move marks a significant milestone for one of India's most successful omnichannel D2C brands. The IPO will be a major test of investor appetite for a high-growth, consumer-facing company with a global footprint and a strong technology-first approach. The funds raised will reportedly be used for setting up new stores, investing in technology, and strategic acquisitions, showcasing Lenskart's ambitious plans for both domestic and international expansion.

EatClub Secures $22 Million from Tiger Global

EatClub, the parent company of popular cloud kitchen brands Box8 and Mojo Pizza, is set to raise ₹185 crore (~$22 million) in a funding round. The investment is led by existing backer Tiger Global, with participation from A91 Partners and 360 ONE Asset Management. The funding reflects continued investor confidence in the cloud kitchen model, especially from a major player like Tiger Global, which has been highly selective with its investments in 2025.

Reliance Consumer in Talks to Acquire ‘Shunya’ Drinks

Reliance Consumer Products is reportedly in talks to acquire a majority stake in Baidyanath Group’s ‘Shunya’ drinks brand. Shunya offers a range of zero-sugar, herb-based functional drinks. This potential acquisition would be Reliance’s fourth in the beverage sector, following its purchases of Campa, Sosyo, and RasKik, and would mark its entry into the growing healthy, functional, and ayurveda-based drink category.

Navi Technologies Raises ₹170 Crore

Fintech firm Navi Technologies, led by Sachin Bansal, has raised ₹170 crore (~$20 million) through the issuance of non-convertible debentures (NCDs). The round was led by PhillipCapital, with other participants including NDX Finserve, Arpee Group, and Ambit Finvest. The capital will be used for the company’s business operations.

Arivihan Secures $4.17 Million in Funding

Indore-based edtech firm Arivihan, which provides automated and personalized coaching for school students, has raised $4.17 million in a funding round. The investment was led by Prosus Ventures and Accel India, with participation from GSF Investors. The capital will be used to expand into three new states, enhance AI research capabilities, and strengthen marketing and distribution efforts.

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