Anicut Capital Raises INR 140 Cr From SIDBI For Their Second Debt Fund

SUMMARY

SIDBI will disburse the funds through the Fund of Funds for Startups (FFS) launched as part of the Indian government’s Startup India initiative

Anicut Capital currently manages two debt funds and an equity-based angel fund

The Chennai-based alternative financing firm had announced the final close of its AIF Grand Anicut Fund II (GAF-II) at INR 875 Cr last month

Anicut Capital has raised INR 140 Cr ($19 Mn) from the Small Industries Development Bank of India (SIDBI) for their second debt fund.

SIDBI will disburse the funds through the Fund of Funds for Startups (FFS) launched as part of the Indian government’s Startup India initiative. FFS is managed by SIDBI and it contributes to the capital of SEBI (Securities and Exchange Board of India) registered alternative investment funds.

Founded in 2016 by Ashvin Chadha and IAS Balamurugan, Anicut Capital currently manages two debt funds and an equity-based angel fund. It has offices in Chennai, Delhi and Bengaluru and has assets under management (AUM) worth INR 1500 Cr (~$200 Mn).

The Chennai-based alternative financing firm had announced the final close of its AIF Grand Anicut Fund II (GAF-II)at INR 875 Cr last month, with a greenshoe option of raising another INR 300 Cr. The second fund made investments across more than 15 growth and early-stage startups, with an average deal size of INR 15-100 Cr.

According to Anicut Capital, GAF II has already invested more than INR 580 Cr in new and existing portfolio startups and companies including Wow Momos, ASG Eye Care Hospital, B9 Beverages (Bira) and Wingreens.

It plans to invest in more than 30 startups across sectors including consumer brands, technology, F&B, and fintech among others for acquisition financing, promoter buyback financing, growth capital and capital restructuring.

“The pandemic is a testimony for many novel ideas that took shape to offer solutions to the unthinkable. We have recently closed our second debt fund and are enthused by the opportunity it provides us to translate the dreams into reality of many young enterprises. The start-up scenario in India is very promising and we are humbled to be a part of it.” said IAS Balamurugan, cofounder and managing partner at Anicut Capital.

According to Inc42 analysis, about $6.2 Bn had been raised by 62 funds across categories (VC, Debt, CVC, Micro VCs) in 2019 to back the rising Indian startup economy. Of these 62 funds, nine are Corporate Venture Capital funds (or CVCs) and 12 are Micro VCs.

2021 also saw more than $28.2 Bn raised through mega funding rounds of over $100 Mn, with an average ticket size of $263 Mn. Excluding these mega-rounds, the total funding poured into the Indian startups was approximately $13.5 Bn in 2021.