Anicut Capital, an alternative investment firm, has raised ₹50 crore from the Small Industries Development Bank of India (SIDBI) for its Grand Anicut Fund. Anicut Equity Fund launched its Grand Anicut Fund 3 in June 2022 with a total targeted corpus of ₹500 crore, with an additional ₹250-crore green shoe option. According to the company, it has closed two-thirds of the fund and has also received a commitment of ₹75 crore from the Self-Reliant India Fund (SRI). The latest investment comes through the Fund of Funds for Startups, launched under the Startup India Initiative by the Government of India. The strategic move is aimed at boosting the early growth-stage companies that are a part of its portfolio.
“We are excited to welcome SIDBI as an investor through the FFS initiative. We see great potential in ventures building an ecosystem of breakthrough innovations that contribute to the development of our communities,” said Dhruv Kapoor, Partner, Anicut Equity Fund.
Within the first year of operations, the fund has already invested in six companies, including Earth Rhythm, Neemans, Wheelocity, The Ayurveda Experience, Blue Tokai Coffee, and XYXX. With a focus on the consumer and technology sectors, the fund aims to invest in 12–14 early growth-stage companies (Series A and B) across Anicut and non-Anicut portfolios over the next 18–24 months.
“The company has exhibited a compelling approach to nurturing startups and growth-stage companies in India. Their latest fund is in cohesion with SIDBI’s objectives of fostering innovation, driving economic growth, and creating employment opportunities in the country. We anticipate this collaboration to result in substantial, impactful outcomes that will benefit the broader business community and contribute to the nation’s economic prosperity”, said S. P. Singh, CGM Incharge, Venture Finance, SIDBI.
The Fund of Funds for Startups (FFS) is a Rs. 10,000 crore initiative launched under the Startup India Initiative of the Government of India in January 2015. Managed by SIDBI, FFS contributes to the capital of SEBI-registered alternative investment funds (AIFs) instead of investing directly in startups. The Rs. 10,000 crore fund forms part of the Union Budget Allocation aimed at stimulating the startup ecosystem in India.
Some of the high-growth businesses backed by Anicut Capital include Mcaffeine, GIVA, Leumas, Hair Originals, Sugar, Bira, Epigamia, LendingKart, Milky Mist, Axiscades, Neemans among others, across the growth spectrum of seed, growth, and credit.