Anicut Capital, known for backing companies such as Wow! Momo, SUGAR Cosmetics, and Blue Tokai, has completed the final close of its Grand Anicut Fund IV at Rs 1,275 crore ($142 million)—the firm’s third private credit fund.
The latest fund underscores growing investor interest in alternative credit strategies in India, as firms seek steady returns amid global market volatility and tightening liquidity.
Launched with a target of Rs 1,000 crore and a Rs 500-crore greenshoe option, Grand Anicut Fund IV has already deployed about Rs 1,100 crore across 15 companies and exited two investments, delivering an average internal rate of return (IRR) of around 19%.
Its portfolio spans a diverse range of sectors, including consumer, engineering services, SaaS, manufacturing, hospitality, and shipbuilding.
The latest fundraise brings Anicut Capital’s total assets under management to approximately Rs 4,500 crore across debt and equity strategies. The fund is supported by a dollar-denominated feeder set up in GIFT City, providing overseas investors with a tax-efficient route to participate in India’s growth story.
Founded in Chennai in 2015, Anicut Capital launched its first private credit fund with a corpus of Rs 400 crore. Today, the firm manages six investment vehicles in total, evenly split between three debt funds and three private equity funds.
Even as volatility shaped investor sentiment through 2025, fundraising in India quietly bucked the broader uncertainty, surpassing 2024 levels and emerging as the second-highest grosser in the past five years.
In the equity space, healthcare-focused private equity firm Somerset Indus Capital Partners announced on Tuesday that it had roped in Proparco, the private-sector financing arm of the Agence Française de Développement (AFD) Group, as a key investor.
