Anicut Capital Completes its Second Funding Round; Garners INR 875 Crore from Domestic Investors
Anicut Capital, a venture debt business, has completed its second fund, garnering INR 875 crore completely from domestic investors, according to a senior company official.
The initial goal was to collect INR 700 crore, but the company kept INR 175 crore in oversubscriptions under the green-shoe option. According to cofounder and managing partner Ashvin Chadha, the funds were raised from institutional investors, rich individuals, and family offices.
Anicut's funding demonstrates domestic investors' sustained interest in venture debt businesses that participate in the startup ecosystem. Trifecta Capital, Alteria Capital, Stride, and Innoven Capital, among others, have recently raised large sums of money to support Indian startups. According to Chadha, the business is planning to create a Rs 1,500 crore third fund in the middle of 2022.
Chadha said, “we have already deployed around 70% of the capital from the second fund in more than 12 early-stage startups, with an average deal size of INR 15-100 crore.”
He further said, “we will fully deploy the capital by the end of the current calendar year.”
Anicut can lend up to INR 2,000 crore to enterprises since a venture debt fund can typically recycle its capital two-and-a-half times the fund size. He added, “the firm has returned 14-15% of capital each quarter to its investors from the first fund and, along with the warrants it holds in some of these companies, it is expected to have a return on investment of around 18-20%.”
Its first fund, worth INR 400 crore, was launched in 2016. Milky Mist, Biryani Blues, Lendingkart, B9 Beverages, Sugar Cosmetics, and Shield Healthcare have all benefited from the inaugural fund.
He underlined, “we have not used any placement agency to raise the capital and have seen almost 80% of our new fund being subscribed by Fund I LPs (limited partners) who have doubled down with larger cheque sizes.”
Both funds are backed by India's Small Industries Development Bank.
Wow Momos, B9 Beverages (Bira), Akna Medical (bought by Pharmeasy), ASG Eye Care Hospital, Azure Hospitality, and Wingreens are among the firms to which it has provided money from the second fund, with BSB and Wingreens having already had successful exits.
He added, “the company also intends to launch diversified funds in the future, including equity funds, financial institution-based debt products and accelerator programmes in collaboration with premier institutions of the country.”
Last year, Anicut helped fund the acquisitions of Raw Pressery by Wingreens and Vardhaman Health Specialties by Akna Medical. Chadha said, “the current pipeline also contains multiple midsize acquisition deals, which we are currently evaluating.”
The initial goal was to collect INR 700 crore, but the company kept INR 175 crore in oversubscriptions under the green-shoe option. According to cofounder and managing partner Ashvin Chadha, the funds were raised from institutional investors, rich individuals, and family offices.
Anicut's funding demonstrates domestic investors' sustained interest in venture debt businesses that participate in the startup ecosystem. Trifecta Capital, Alteria Capital, Stride, and Innoven Capital, among others, have recently raised large sums of money to support Indian startups. According to Chadha, the business is planning to create a Rs 1,500 crore third fund in the middle of 2022.
Chadha said, “we have already deployed around 70% of the capital from the second fund in more than 12 early-stage startups, with an average deal size of INR 15-100 crore.”
He further said, “we will fully deploy the capital by the end of the current calendar year.”
Anicut can lend up to INR 2,000 crore to enterprises since a venture debt fund can typically recycle its capital two-and-a-half times the fund size. He added, “the firm has returned 14-15% of capital each quarter to its investors from the first fund and, along with the warrants it holds in some of these companies, it is expected to have a return on investment of around 18-20%.”
Its first fund, worth INR 400 crore, was launched in 2016. Milky Mist, Biryani Blues, Lendingkart, B9 Beverages, Sugar Cosmetics, and Shield Healthcare have all benefited from the inaugural fund.
He underlined, “we have not used any placement agency to raise the capital and have seen almost 80% of our new fund being subscribed by Fund I LPs (limited partners) who have doubled down with larger cheque sizes.”
Both funds are backed by India's Small Industries Development Bank.
Wow Momos, B9 Beverages (Bira), Akna Medical (bought by Pharmeasy), ASG Eye Care Hospital, Azure Hospitality, and Wingreens are among the firms to which it has provided money from the second fund, with BSB and Wingreens having already had successful exits.
He added, “the company also intends to launch diversified funds in the future, including equity funds, financial institution-based debt products and accelerator programmes in collaboration with premier institutions of the country.”
Last year, Anicut helped fund the acquisitions of Raw Pressery by Wingreens and Vardhaman Health Specialties by Akna Medical. Chadha said, “the current pipeline also contains multiple midsize acquisition deals, which we are currently evaluating.”
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