Anicut Capital, an asset management company in India managing alternative assets, has received a commitment of over ₹30 crore from HDFC AMC’s Fund of Fund with possible additional allocation in the near future. 

The investment will be made from HDFC AMC’s Select AIF FOF-I which invests in Category I and II venture capital/private equity-oriented AIFs. This fund seeks to invest in pedigree fund managers with complementary strategies across investment stages, from early to growth, to provide optimal risk-adjusted returns with effective diversification. 

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Dhruv Kapoor, Partner at Anicut Capital, expressed his excitement about the investment, stating, “At Anicut Capital’s Equity fund, our goal is to provide fuel to businesses demonstrating robust growth across sectors in the country. With this commitment, we are empowered to elevate our investment journey to the next level and actively seek game-changing early growth investment opportunities in the market.”

The investment will be deployed through Anicut’s Equity fund (Grand Anicut Fund 3), which was launched in June 2022.

Anicut Equity Fund, having already invested over ₹150 crores in six promising companies — Blue Tokai, Earth Rhythm, Neeman’s, XYXX, Wheelocity and The Ayurveda Experience — will pursue early growth investments across a total of 12-14 companies, within the Anicut portfolio and beyond. 

The fund focuses on a diverse range of sectors, including Consumer, Internet, Technology and B2B, among others.

Growing fast

The Indian early stage and growth/mid-market ecosystem remains one of the fastest growing globally with India evolving as a highly sought after market for alternative investments. At present, the Indian VC/PE market is a small proportion of the total global market but is expected to grow very swiftly in the coming years. 

Global funds are increasing their allocations to India and many new funds are looking to enter India providing impetus to India-dedicated fundraising. Alternative investments are gaining traction among investors and are poised to become even more mainstream in the coming years.