The commitment bolsters Anicut Capital’s high-impact, early growth stage portfolio
Anicut Capital, a leading asset management company in India managing alternative assets, has announced that they have received a significant commitment of over Rs. 30 crores from HDFC AMC’s Fund of Fund with possible additional allocation in the near future. The investment will be made from HDFC AMC’s Select AIF FOF-I which invests in Category I and II Venture Capital/Private Equity oriented AIFs. This fund seeks to invest in pedigree fund managers with complementary strategies across investment stages from early to growth to provide optimal risk-adjusted returns with effective diversification. The investment will be deployed through Anicut’s Equity fund (Grand Anicut Fund 3), which was launched in June 2022.
Anicut Equity Fund, having already invested Rs. 150+ crores in six promising companies, including Blue Tokai, Earth Rhythm, Neeman’s, XYXX, Wheelocity and The Ayurveda Experience, will pursue early growth investments across a total of 12-14 companies, within the Anicut portfolio and beyond. The fund focuses on a diverse range of sectors, including Consumer, Internet, Technology and B2B, among others.
Dhruv Kapoor, Partner at Anicut Capital, expressed his excitement about the investment, stating, “We are thrilled to welcome HDFC AMC as an investor. Their investment is not only a testament to the trust and confidence instilled in our vision but also positions us to take significant strides toward enhancing the Indian startup ecosystem at the growth stage. At Anicut Capital’s Equity fund, our goal is to provide fuel to businesses demonstrating robust growth across sectors in the country. With this commitment, we are empowered to elevate our investment journey to the next level and actively seek game-changing early growth investment opportunities in the market.”
The Indian early stage and growth/mid-market ecosystem remains one of the fastest growing globally with India evolving as a highly sought after market for alternative investments. At present, the Indian VC/PE market is a small proportion of the total global market but is expected to grow very swiftly in the coming years. Global funds are increasing their allocations to India and many new funds are looking to enter India providing impetus to India-dedicated fundraising.Alternative investments are gaining traction among investors and are poised to become even more mainstream in the coming years.
Anicut Equity Fund was launched by Anicut Capital in June 2022, with a total corpus of Rs. 500 crores, including an additional Rs. 250 crore green shoe option. To date, Anicut Equity Fund has successfully secured Rs. 320 crores, which also includes institutional investments of Rs. 75 crores from Self Reliant India Fund (SRI) and Rs. 50 crores from SIDBI’s FFS initiative.
Ashvin Chadha, Founding Partner at Anicut Capital, said, “We are elated to bring onboard HDFC AMC as an investor and long-term partner for our equity fund. Their experience, parentage and platform breadth are highly renowned, and we look forward to continuing to pursue our disciplined investment strategy and portfolio building. We continue to see tremendous investment opportunities in India driven by the country’s structural growth drivers and our long-term investment outlook continues to remain positive.”