Anicut Capital Receives SEBI’s Nod For INR 1,500 Cr Debt Fund

SUMMARY

The fund will be launched in the fourth quarter of FY23 and have a green shoe option of INR 500 Cr

With investments in early and growth-stage startups, Anicut claims to be managing assets worth INR 1,600 Cr

So far this year, Anicut’s second debt fund infused over INR 550 Cr in 15 deals and 25 equity funding rounds of early and growth-stage startups

Alternative financing firm Anicut Capital announced that it has got regulatory body SEBI’s approval for INR 1,500 Cr third debt fund named Grand Anicut Fund 4.

With a green shoe option of INR 500 Cr, the fund will be launched in the fourth quarter (Q4) of FY23. It will also mark its first closure by the end of Q4 FY23.

“With the closure of Grand Anicut Fund 4, we are delighted to further strengthen our support to empower the Indian startup ecosystem. The past years have been highly encouraging with the closure of five funds overall and we are confident that our investment portfolio companies will be the leaders of tomorrow, said Ashvin Chadha, founding partner, Anicut Capital.

Founded in 2016 by Ashvin Chadha and IAS Balamurugan, Anicut Capital offers debt and equity investments. It is currently managing two debt funds – Anicut Angel Fund and Anicut Opportunities VC Fund.

Anicut claims to be managing assets worth INR 1,600 Cr, with investments in early and growth-stage startups.

So far this year, Anicut’s second debt fund infused over INR 550 Cr in 15 deals and 25 equity funding rounds of early-stage and growth-stage startups.

Besides, it has recently onboarded Chetan Prakash Sancheti as its partner, who will be strengthening debt side operations in the organisation.

In the past seven years, Anicut Capital has backed several startups – Bira, Kaynes Technologies, Lendingkart, Wow! Momo, Milky Mist, Agnikul and Sharechat, to name a few. Its total portfolio comprises 34 startups on the debt side and 55 startups on the equity side.

The development has come at a time when uncertainty looms over Indian startups, as they are dealing with challenges such as liquidity crunch, market inflation, negative investor sentiments and global disruption.

Amid this, debt funding is acting as a catalyst for startups to keep themselves buoyant. Seeing this, Dunzo today secured $6.2 Mn debt funding from Blacksoil India.

Prior to that, ecommerce startup Udaan and online pharmacy startup PharmEasy received debt funding from EvolutionX Debt Capital. Meanwhile, Aye Finance bagged $10.6 Mn debt funding from BlueOrchard.

Edelweiss Wealth Management introduced an INR 3,000 Cr ($361 Mn) venture debt fund in October. In the same month, Alteria Capital marked the first closure of its INR 1,000 Cr debt fund.