Paragon Partners, known for its investments in consumer brands like Chai Point and mCaffeine, is preparing to launch its third mid-market private equity fund with a target corpus of ₹1,500 crore. The firm has received approval from the Securities and Exchange Board of India (SEBI) to raise a larger fund of ₹2,000 crore, but aims for a more manageable size to maintain return discipline. Co-founder Siddharth Parekh highlighted that the firm will begin fundraising in the coming months and expects to finalize it within 12-18 months. The strategy includes securing liquidity through exits from its first fund and early investments in the second, anticipating 2-3 liquidity events this year. Paragon's previous funds, which raised ₹760 crore in 2017 and ₹650 crore in 2022, attracted a mix of family offices and institutional investors. The third fund will target 10-12 investments, focusing on sectors like financial services and healthcare, while avoiding capital-intensive industries. Amid a revival in private equity activity in India, with fundraising doubling year-on-year to about $5.4 billion, Paragon aims to capitalize on this momentum by backing proven operators in sectors with strong unit economics.