Anicut Capital Raises INR 1,275 Cr for Grand Anicut Fund IV

The fund structure includes a dollar-denominated feeder based in GIFT City, which allows overseas investors to access India's private credit market. Anicut Capital typically invests about INR 80 crore per deal, with transactions spread across sectors such as consumer businesses, engineering services, software-as-a-service (SaaS), manufacturing, hospitality, and shipbuilding.

Following the close of GAF-IV, Anicut Capital's total assets under management have reached approximately INR 4,500 crore across its debt and equity strategies. The firm currently manages six funds in total, evenly split between private credit and equity investments.

IAS Balamurugan, Co-founder and Managing Partner at Anicut Capital, said the firm prioritises long-term business strength over short-term gains. "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," he said.

The Chennai-headquartered investment firm stated that it continues to focus on cash flow discipline, governance standards, and clear exit planning, while strengthening its institutional underwriting approach with each fund cycle. Its portfolio includes companies such as Milky Mist, Blue Tokai, Wow! Momo, GNRC Hospital, Neemans, and Agnikul.

Funding activity in Indian startups remained lower in 2025 compared to 2024. However, multiple venture capital and private equity firms have raised new funds this year, suggesting capital availability could improve for startups in the coming year.