Anicut Capital, the Chennai-headquartered investment firm, announced on Wednesday the final close of its third private credit vehicle, Grand Anicut Fund IV (GAF-IV), at Rs 1,275 crore, thereby exceeding its original target of Rs 1,000 crore. Through this milestone, the firm reinforced its growing presence in India’s private credit ecosystem while demonstrating strong investor confidence.
According to the company, the fund incorporates a GIFT City–based dollar feeder, which consequently enables global investors to access India’s expanding private credit opportunity. Additionally, Anicut Capital typically deploys close to Rs 80 crore per transaction while spreading investments across diverse sectors, including consumer businesses, engineering services, SaaS, manufacturing, hospitality, and shipbuilding.
Following the successful closure of GAF-IV, Anicut Capital’s assets under management have now reached approximately Rs 4,500 crore across both debt and equity strategies. As a result, the firm has further strengthened its position as a multi-asset investment platform with a balanced approach to credit and growth capital.
“We look for reliable promoters who have navigated cycles, reinvested cash flows back into the business, and built resilient operating systems that tend to stand out more than those optimising for short-term valuations,” said IAS Balamurugan, Co-founder and Managing Partner, Anicut Capital.
Moreover, the firm continues to prioritise cashflow quality, strong corporate governance practices, and clearly articulated exit pathways, while steadily expanding its institutional underwriting framework across successive fund cycles. Through this disciplined approach, Anicut Capital aims to deliver consistent risk-adjusted returns for its investors.
Currently, the venture capital firm manages six funds in total, evenly split between debt and equity strategies. Its portfolio features a broad mix of consumer, technology, and industrial brands, including Milky Mist, The Ayurveda Experience, Wow! Momo, Mistral, Blue Tokai, XYXX, ToneTag, GNRC Hospital, Neemans, and Agnikul.
Although funding activity in Indian startups declined in 2025 compared to 2024, the continued capital-raising efforts by several venture capital and private equity firms, including Anicut Capital, signal sustained liquidity in the ecosystem. Consequently, this trend indicates that capital availability for Indian startups is likely to remain healthy in the coming year.
