HDFC AMC’s Fund of Fund Commits Over INR 30 Crore to Anicut Capital LLP

• ByStartupStory     |    November 1, 2023

Anicut Capital, known for its investments in both debt and equity funds, has announced an investment of over Rs 30 crore from HDFC Asset Management Company’s (AMC) Fund of Funds, with the possibility of further allocation in the near future.

The funding will be channeled through Anicut Capital’s equity fund, specifically the Grand Anicut Fund 3, which was launched in June 2022, according to a statement by the Chennai-based firm.

Ashvin Chadha, founding partner at Anicut Capital, expressed his enthusiasm about this investment and welcomed HDFC AMC as a long-term partner for their equity fund. He emphasized the wealth of investment opportunities in India, driven by the nation’s structural growth drivers, and maintained a positive outlook for long-term investments.

Grand Anicut Fund 3, with a total corpus of Rs 500 crore and an additional greenshoe option of Rs 250 crore, has already invested over Rs 150 crore in six companies, the statement noted. These investments encompass various sectors, including gourmet coffee roaster and cafe Blue Tokai Coffee, skincare brands Earth Rhythm, direct-to-consumer (D2C) platform The Ayurveda Experience, footwear brand Neemans, fresh food supply chain startup Wheelocity, and men’s apparel brand XYXX.

The fund is positioned to concentrate on early growth investments across 12-14 companies, both within its existing portfolio and beyond, spanning sectors such as consumer, internet, technology, and business-to-business (B2B), among others.

To date, the fund has secured Rs 320 crore in investments, which includes institutional investments of Rs 75 crore from Self Reliant India Fund and Rs 50 crore for its equity investments fund from the Small Industries Development Bank of India’s (SIDBI) Fund of Funds for Startups (FFS).

Dhruv Kapoor, partner at Anicut Capital, outlined the mission of their equity fund as providing support to businesses that exhibit robust growth across various sectors in the country.

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Currently managing three debt funds, a seed fund, and an early growth equity fund, Anicut Capital oversees cumulative assets under management totaling Rs 2,200 crore. The firm has previously supported notable companies like Wow! Momo, Bira, Sugar Cosmetics, Sharechat, Mcaffeine, Wingreens, Curatio Healthcare, and Agnikul, among others.

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