Anicut raises Rs 50 Cr from SIDBI startup fund

Alternative investment firm Anicut Capital has secured an investment of Rs 50 crore from the Small Industries Development Bank of India (SIDBI) for the Anicut Equity Fund. The investment comes through the Fund of Funds for Startups (FFS), launched under the Startup India Initiative by the Government of India.

Anicut Equity Fund launched its Grand Anicut Fund 3 in June 2022 with a total targeted corpus of Rs 500 crore, with an additional Rs 250 crore green shoe option. According to the investment firm, it has successfully closed two-thirds of the fund and has also received a commitment of Rs 75 crore from Self Reliant India Fund (SRI).

Within the first year of operations, the fund has already invested in six companies including Earth Rhythm, Neemans, Wheelocity, The Ayurveda Experience, Blue Tokai Coffee and XYXX.

It aims 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.

"This generous commitment from SIDBI not only provides us with the capital to invest in innovative startups but also solidifies our commitment to adding value to the burgeoning Indian startup industry," said Dhruv Kapoor, Partner at Anicut Equity Fund.

With a cumulative AUM of Rs 1,600 crore, Anicut Capital has backed innovative high-growth businesses such as Mcaffeine, GIVA, Leumas, Hair Originals, Sugar, Bira, Epigamia, LendingKart, Milky Mist, Axiscades, Neemans among others.