Chennai-based alternative asset management firm, Anicut Capital, has gathered dollar-denominated investments of $ 11 million to Private Credit Fund III up till now. It will be a part of the overall trend witnessed in how global investors are sizzling to form India’s financial landscape. With the new increase, Anicut is cementing its position as an essential player in private credit as it supports mid-sized enterprises with flexible financing options. Funds have been raised through a unique GIFT City structure, a flagship international investment within India’s framework. It provides a critical corridor for foreign investors to tap the Indian market.
Anicut Capital: Global Investors Back Indian Growth
The Private Credit Fund III by Anicut Capital has attracted a diversified pool of institutional investors, family offices, and high-net-worth individuals (HNIs) across various global markets. It also includes the United States, the United Kingdom, Europe, and the Middle East. Incidentally, the investment structure, through Gujarat International Finance Tec-City (GIFT City), also reflects the growing confidence of international investors in India’s economic potential. GIFT City has emerged as an internationally efficient financial services hub because the facility provides an expedited, regulated environment for cross-border investments to investors.
The IFSC, which has regulated and promoted international financial services in India, provides a sound and secure platform for global capital inflows. This development, in turn, marks a precious milestone in the collaborative efforts of the government and financial institutions towards creating an appropriate environment for international investments in India.
These international commitments confirm our vision and strategy,” said cofounders Ashvin Chadha and IAS Balamurugan. GIFT City’s structure is “a great enabler where we can bring in capital that will fuel the growth of Indian midmarket companies,” said Chadha. “Our passion for customized credit solutions resonates with global investors who want to be part of India’s growth story,” he added.
Bridging funding gaps for mid-market companies
The $11 million raised forms a part of its vision for the Private Credit Fund III under Anicut Capital, which aims to raise a corpus of Rs 1,500 crore or $180 million. It would provide much-needed financing to India’s mid-sized enterprises, which rarely have too many routes to traditional credit. Its focus scope includes providing acquisition capital, promoter buybacks, bridge finance, and much more – growth-related needs.
The economy usually considers mid-market businesses to be the backbone. Innovation growth engines often need to work on securing financing on favorable terms. Through bespoke credit solutions, Anicut Capital’s fund shall plug the gap to enable these businesses to scale, compete, and expand in a highly competitive market.
Since its inception, Anicut Capital has deployed close to Rs 3,200 crore ($390 million) in private credit across mid-market sectors in India. Headquartered in Bengaluru, its funds have helped grow companies such as Milky Mist. Wow! Momo, Bira, Blue Tokai, and Agnikul. These companies represent the diversity in the landscape of India’s mid-markets. Significantly, it has been instrumental in the growth trajectory of all these companies.
The capital raised through GIFT City will help Anicut Capital scale up in these international financial hubs and across key Indian cities like Delhi, Chennai, and Bengaluru. Currently, the firm has a total active AUM standing at Rs 3,500 crore. It has established itself at the forefront of the private credit space in India.
