New Delhi, July 29 -- Alternative investment firm Anicut Capital has launched its second early-stage venture fund with a target corpus of Rs 175 crore ($18.3 million) to invest in technology-led startups from the pre-seed to Series A stages.

The Grand Anicut Seed Fund (GASF) also has an additional greenshoe option of Rs 75 crore and will invest in more than 20 startups across deeptech, enterprise technology, consumer and financial services, with cheque sizes ranging from Rs 5 crore to Rs 8 crore, the firm said in a statement.

The Chennai-headquartered firm said the fund is targeting its first close soon, with commitments expected from institutional investors, high-net-worth individuals and domestic and overseas family offices. It has already begun deploying capital and has completed three investments, although it did not disclose the names of the portfolio companies.

"Our early-stage investment strategy has been validated through our previous fund, Grand Anicut Angel Fund, which has backed several category-defining companies. With our second fund, we aim to build on this strategy by partnering with founders in their 0-to-1 journey," said Ajay Anand, partner at Anicut Capital.

Anicut launched its first early-stage vehicle, the Grand Anicut Angel Fund, in 2021. The fund has backed 68 startups across pre-seed to pre-Series A stages, including Agnikul Cosmos, GIVA, CapGrid, Blue Tokai Coffee Roasters, Snapmint, GalaxEye, E-Plane and Grip Invest. According to the firm, these portfolio companies have collectively raised more than Rs 6,000 crore in follow-on funding.

Founded in 2015 by T. Balasubramanian and Rajesh Krishnan, Anicut Capital is a multi-asset alternative investment manager investing through both debt and equity strategies. The firm manages seven funds-three debt funds and four equity funds-with assets under management exceeding Rs 4,500 crore. Its broader portfolio includes companies such as Wow! Momo, Milky Mist, Wingreens, Khetika and SFO Technologies.

Published by HT Digital Content Services with permission from VC Circle.