Credit and Finance for MSMEs: Chennai-based alternative financing firm, Anicut Capital announced that it has received a commitment of Rs 75 crores for their equity fund from the government’s Self Reliant India Fund (SRI) to provide growth capital to the MSME ecosystem.
SRI Fund is a Rs 10,000 crore Fund of Funds (FoF) that operates through the mother-fund and daughter-fund structure wherein SRI fund, as a mother fund, invests up to 20 per cent of the overall corpus of daughter fund (mostly VC and PE funds) and the latter raises the balance 80 per cent of the capital from outside sources. SBICAP Ventures, owned by the State Bank of India Group, is the investment manager of the fund.
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The Rs 75-crore received by Anicut Capital shall be deployed through its Rs 500-crore Grand Anicut Fund 3 launched in June last year. The fund will invest in 10-15 growth-stage companies over the next two years that focus on technology, consumer products and B2B brands.
In the last six months, Anicut Capital has already made five investments and two more are likely to be closed by the next quarter.
“The commitment from SRI Fund furthers our agenda of strengthening small and medium enterprises across India. Additionally, we are also excited to welcome Arun Thathachari to our leadership team,” said Dhruv Kapoor, Partner, Anicut Capital.
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Anicut Capital claims to have assets under management (AUM) of Rs 1,600 crore through its two debt funds (GAF-1 and GAF-2), Anicut Angel Fund and Grand Anicut Fund 3.
Some of the companies in its portfolio include Wow! Momo, Bira, Sugar cosmetics, Earth rhythm, Wingreens, Blue Tokai, Sharechat, Mcaffeine among others.