Chennai-based alternative investment firm Anicut Capital on Monday said it has secured Rs 140 crore ($18.6 million) for its second debt vehicle from Small Industries Development Bank of India (SIDBI).
Anicut has marked the final close of its second debt fund, christened as Grand Anicut Fund-2, at Rs 875 crore ($118 million), earlier this month.
SIDBI has returned as an anchor investor in the second fund. Anicut had secured SIDBI's backing for its maiden fund, Grand Anicut I, which had a target of Rs 300 crore, but eventually raised Rs 400 crore.
Anicut was set up by financial services veterans Ashvin Chadha and IAS Balamurugan.
The funds received from SIDBI is through the Fund of Funds for Startups (FFS) launched under the Startup India Initiative of the Indian government in January 2015.
SIDBI is a financial institution engaged in the promotion, financing and development of micro, small and medium enterprises (MSMEs).
The ambitious Rs 10,000 crore FFS forms a part of Union Budget allocation and was launched to boost the growth of the startup ecosystem of the country.
Managed by SIDBI, FFS contributes to the capital of SEBI-registered Alternative Investment Funds (AIF) instead of investing directly into startups.
“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.
I congratulate SIDBI and Startup India Initiative for such a visionary approach. The startup scenario in India is very promising and we are humbled to be a part of it,” said I A S Balamurugan, Co-Founder and Managing Partner at Anicut Capital.
The second debt vehicle is said to have already deployed more than Rs 580 crore across over 15 startups. Some of the well-known portfolios include the likes of Wow Momos, ASG Eye Care Hospital, Akna Medical (acquired by Pharmeasy) and B9 Beverages (Bira beer brand), among others.
The fund plans to invest in a total of more than 30 early and growth stage companies across sectors such as consumer brands, technology, F&B, fintech, among others under categories of acquisition financing, promoter/buyback financing, growth capital and capital restructuring.
Besides the two debt funds, the Chennai-based institution also manages an equity fund.
Anicut Angel Fund was launched in early 2020 and has invested over Rs 125 crore across over 40 early-stage startups.
The funds have financed the likes of Bira, Wow! Momo, Sugar Cosmetics among Neeman’s in the past.
VCCircle also reported earlier this month, that Anicut is set to launch its venture fund (VC) that has a target corpus of Rs 500 crore ($67 million). The venture fund also has a greenshoe option to raise an additional Rs 250 crore.
Anicut may also look to hit the roads to start raising its third debt fund which could be in the range of Rs 1,200-1,500 crore.