Anicut Equity Fund bags Rs 50 Cr from SIDBI through FFS initiative

Anicut Capital has secured Rs 50 crore from the Small Industries Development Bank of India (SIDBI) for its Anicut Equity Fund.

Anicut Equity Fund launched Grand Anicut Fund 3 in June 2022, targeting Rs 500 crore with an additional Rs 250 crore in green shoe option. The venture capital firm closed two-thirds of the fund and received a Rs 75 crore commitment from the Self Reliant India Fund.

The investment comes through the Fund of Funds for Startups (FFS), launched under the Startup India Initiative. The move is aimed at boosting the early growth-stage companies part of Anicut’s Equity portfolio, the company said in a statement.

"This investment isn't just a vote of confidence in Anicut, but a strategic alignment aimed at boosting India's evolving entrepreneurial landscape," said S P Singh, CGM Incharge, Venture Finance, SIDBI.

"We anticipate this collaboration to result in substantial, high-impact outcomes that will benefit the broader business community and contribute to the nation's economic prosperity,” he added.

SIDBI, an existing Anicut Capital investor, had invested Rs 140 crore in Anicut's second debt fund. 

The fund has invested in six companies in its first year, with a focus on the consumer and technology sectors. It plans to invest in 12-14 early growth-stage companies (Series A and B) across Anicut and non-Anicut portfolios over the next 18-24 months.

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Anicut Capital is a multi-asset financial institution managing three debt funds, one angel fund, and one early growth equity fund with a cumulative AUM of Rs 1,600 crore. It invests in early and growth-stage startups, including Wow! Momo, Bira91, SUGAR Cosmetics, Wingreens, Blue Tokai Coffee, ShareChat, mCaffeine, Milkymist, XYXX, Curatio Healthcare, AgniKul Cosmos, The ePlane Company, Impresario, and Grip Invest.

"This investment will greatly enhance our ability to create value across multiple sectors and give us the opportunity to further enhance the third largest startup ecosystem in the world,” said Ashvin Chadha, Founding Partner, Anicut Capital.