Anicut Capital raises Rs 1,275 Cr in third private credit fund GAF-IV

Anicut Capital, the Chennai-headquartered investment firm, on Wednesday announced the final close of its third private credit fund—Grand Anicut Fund IV (GAF-IV)—at Rs 1,275 crore, surpassing its initial target of Rs 1,000 crore.

According to a statement, the fund includes a GIFT City-based dollar feeder, enabling global investors to participate in India’s private credit opportunity. Anicut invests around Rs 80 crore per transaction, which spans across consumer, engineering services, SaaS, manufacturing, hospitality, and shipbuilding segments.

Now, with the closure of the GAF-IV fund, assets under management for Anicut Capital stand at around Rs 4,500 crore across its debt and equity investments.

“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, Anicut Capital.

According to the firm, it continues to emphasise cashflow quality, corporate governance, and clearly defined exit pathways, while expanding its institutional underwriting framework across successive fund cycles.

The VC has six diverse funds, three each in debt and equity. Its portfolio includes brands such as Milky Mist, The Ayurveda Experience, Wow! Momo, Mistral, Blue Tokai, XYXX, ToneTag, GNRC Hospital, Neemans, and Agnikul.

Funding into Indian startups was lower in 2025 than in 2024. With many VCs and private equity fund houses raising capital this year, including Anicut Capital, it is a good indication that money will be available for the Indian startups for next year.