India's Anicut hits $36m second close on VC fund
Indian early-stage investor Anicut Capital has achieved a second close of about INR 3bn on its latest fund. The target is INR 5bn with a greenshoe of INR 250m.
Investors include the Small Industries Development Bank of India (SIDBI), which contributed INR 500m via its Fund of Funds for Startups vehicle launched under the government’s Startup India initiative. Self Reliant India (SRI), another government initiative, provided INR 750m.
It follows a first close of INR 1.1bn in June last year when the fund was branded Anicut Opportunities Fund I. As of the second close, the vehicle, now referred to as Grand Anicut Fund 3 has invested in six companies.
The investees include shoe market Neemans, food supply chain technology provider Wheelocity, cafe supplier Blue Tokai Coffee, and men’s clothing brand XYXX, as well as two skincare and supplements platforms: Earth Rhythm and Ayurveda Experience.
The plan is to expand the firm's exposure to the Series A and B space, by backing 12-14 companies in the next 18-24 months. An unspecified portion of the capital has been earmarked for existing portfolio holdings.
“Anicut Equity Fund has exhibited a compelling approach to nurturing startups and growth-stage companies in India,” Shri S P Singh, CEO of SIDBI Venture Capital, said in a statement.
“This investment isn't just a vote of confidence in Anicut, but a strategic alignment aimed at boosting India's evolving entrepreneurial landscape. We anticipate this collaboration to result in substantial, high-impact outcomes that will benefit the broader business community and contribute to the nation's economic prosperity.”
Anicut was founded in 2015 by financial services veterans Ashvin Chadha and IAS Balamurugan (pictured, left to right) as a debt provider for small businesses. It raised two debt funds with LP support from family offices and Small Industries Development Bank of India. The most recent of these closed on INR 4bn in 2018.
The firm set up an angel fund in 2019 to make equity investments of up to INR 50m. It claims to have written first cheques for the likes of financial services start-ups Lendingkart and Five Star Business Finance, as well as beer brand Bira 91, and logistics software provider Loginext. It is also an investor in media unicorn ShareChat.
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