An asset management company Anicut Capital stands out in the alternative investment landscape due to its flexibility in offering both debt and equity investments across various stages of a company’s growth.

Ashvin Chadha, Managing Partner and Co-founder of Anicut Capital, has been pivotal in shaping the firm’s dynamic investment journey.

Since launching their first private credit fund in 2016, they have expanded to include venture capital funds focusing on seed and early-growth equity. This diversified strategy allows them to support a wide range of businesses, from early-stage startups to established enterprises.

According to Chadha, Anicut currently manages three debt funds, a seed fund, an early-growth equity fund, and a late-stage private equity fund, with a cumulative AUM of INR 3,500 crore.

As an investment firm, Anicut’s investment thesis is comprehensive, focusing on the quality of founding teams, market potential, unique solutions, and sustainable business models.

“Our investment criteria differ throughout our investment methods: seed, early growth, and private credit,” says Chadha.

In seed-stage investments, the Chennai-based firm prioritises the founders’ vision and ability to execute. For early-growth investments, it looks for proven business models with sustainable growth and profitability. In private credit, it seeks businesses with consistent growth, strong cash flows, and market leadership.

Chadha emphasises that we are a sector-agnostic investor with a portfolio of over 100 companies spanning across many sectors, including consumer brands, fintech, B2B/SaaS, and IT services.

AgniKul Cosmos, Wow! Momo, SUGAR Cosmetics, Bira91, Lendingkart, AXISCADES, Kaynes Technology, Blue Tokai, Wingreens, ShareChat, mCaffeine, and XYXX are among some of its portfolio companies.

Some of the success stories from its portfolio include Neeman’s, a sustainability-oriented footwear brand; CapGrid, a procurement technology startup; Agnikul, a space tech company specialising in 3D-printed rockets; and Illumine-i, a sustainable design and engineering firm. These examples showcase Anicut Capital’s ability to identify and nurture innovative companies poised for growth.

Chadha highlights that their role extends beyond providing financial support to offering mentorship, strategic guidance, and access to a vast network, fostering the growth of their portfolio companies. This holistic approach has been instrumental in their success, enabling them to adapt to market dynamics and embrace innovation.

With approximately 35 exits in private credit, Anicut Capital’s agile and strategic approach has enabled them to stay ahead of market trends. As they look to the future, Chadha is optimistic about FY 2024–25, anticipating strong deal-making activities and a significant increase in their AUM.

He highlights sectors like D2C, space-tech, clean-tech, and tech services as areas of interest, driven by India’s expanding consumer market and digital adoption.

With an average ticket size ranging from INR 3–4 crore in seed funding to INR 50–60 crore in private credit, Anicut Capital continues to leverage its extensive network and sector expertise to drive the success of its investments.

Facts:

• Portfolio Size: 110 companies across seed, growth equity, and private credit
• Average Ticket Size: Seed: INR 3–4 Cr; Early Growth: INR 25–30 Cr; Credit: INR 50–60 Cr
• Total Exits: Approx 35 (private credit)
• Assets Under Management: INR 3,500 Cr