Startup investor Anicut Capital closes Rs 1,275 crore GAF-IV, its third private credit fund

Anicut Capital has announced the final close of its third private credit vehicle, Grand Anicut Fund IV (GAF-IV), at Rs 1,275 crore, exceeding its initial target of Rs 1,000 crore.

The Chennai-headquartered investment firm said the fund will back companies across consumer, engineering services, SaaS, manufacturing, hospitality, and shipbuilding sectors.

According to the firm, GAF-IV includes a GIFT City-based dollar feeder structure that allows global investors to participate in India’s private credit opportunity. Through this feeder, Anicut raised around $11 million, or nearly Rs 92 crore, in dollar-denominated commitments last year. The firm plans to deploy capital with an average cheque size of about Rs 80 crore per transaction.

With the close of GAF-IV, Anicut Capital’s total assets under management stand at around Rs 4,500 crore across six funds, split evenly between debt and equity strategies. Founded in 2016 by Ashvin Chadha and IAS Balamurugan, the firm provides both debt and equity capital to growth-stage companies.

“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 at Anicut Capital. The firm said its investment approach continues to emphasise cashflow quality, corporate governance, and clearly defined exit pathways, while strengthening its institutional underwriting framework across successive fund cycles.

Anicut’s portfolio includes companies such as Milky Mist, The Ayurveda Experience, Wow! Momo, Mistral, Blue Tokai, XYXX, ToneTag, GNRC Hospital, Neemans, and Agnikul.