Chennai-based Anicut Capital to invest in 20 startups with ₹175-crore fund

Chennai-headquartered Anicut Capital, an alternative asset management company managing multiple Alternative Investment Funds (AIFs) across both debt and equity strategies, has launched Grand Anicut Seed Fund (GASF) with a target corpus of ₹175 crore and a greenshoe option of ₹75 crore. This is Anicut’s second fund for early-stage investments. The fund is set to focus on Pre-e to Series A investments across deep-tech, enterprise-tech, consumer, and financial services startups.

“We have been investing in early-stage equity since 2021 through our first fund, which was an angel fund. Through that fund, we built a portfolio across these four sectors. The strategy worked well for us, and we have developed a strong investment playbook for these sectors that has been time-tested and validated. It has also generated strong returns,” Ajay Anand, partner, Anicut Capital, told The Hindu.

With GASF, Anicut plans to invest in over 20 startups with ticket sizes in the range of ₹5 crore to ₹8 crore. The fund is targeting a first close soon, with a target LP mix of Institutional Investors, HNIs, and domestic and foreign family offices. The fund has started deploying and have closed three deals, all being led by Anicut.

“With our second fund, we aim to build on this proven strategy by partnering with exceptional founders in their 0-to-1 journey, providing both capital and strategic support as they create next-generation categories and build enduring, market-leading businesses,” Mr. Ajay added.

Anicut has been investing in early-stage equity since 2021 through Grand Anicut Angel Fund (GAAF), which has made 68 investments to date ranging from pre-seed to pre-series A across deep-tech, enterprise tech, consumer and financial services startups. These startups have gone on to raise follow-on capital to the tune of over ₹6,000 crore, with 10x portfolio revenue growth since the first check. Notable portfolio companies under GAAF include Agnikul Cosmos, GIVA, CapGrid, InspeCity, Leumas, Neeman’s, Blue Tokai Coffee Roasters, Snapmint, Salty, GRIP, Galaxeye, E-plane, and E-trnl.

Anicut Capital is an alternative asset management company managing multiple AIFs across both debt and equity strategies. Managing seven diverse funds, including three debt funds and four equity funds, Anicut has a total active AUM (Assets Under Management) of over ₹4,500 crore.