New Delhi, July 6 -- Home-grown alternative investment firm Anicut Capital has part-financed a technology firm's acquisition, a top company executive told VCCircle.
Chennai-headquartered Anicut Capital, which was founded in 2016 and manages six funds across debt and equity strategies, provides capital for small and medium enterprises (SMEs) operating in India through their seed, expansion and growth stages.
The firm has committed Rs 45 crore ($4.7 million) to Saints & Masters (S&M), part funding latter's latest acquisition.
Last week, S&M, a technology advisory and execution firm with a focus on cloud services and AI-led innovation, acquired 100 per cent stake in Bengaluru-based cloud and AI solutions provider Xencia Technology Solutions. S&M financed the acquisition through debt, equity and share swap.
Anicut will issue its investment in the deal from its third private credit fund--Grand Anicut Fund IV--which marked its final close last December at Rs 1,275 crore ($142 million).
Post the acquisition, S&M was valued at roughly Rs 300 crore. VCCircle could not immediately ascertain the valuation of the target company.
"This transaction further reinforces Anicut's established expertise in acquisition financing, having structured and deployed capital across several marquee transactions including TAO's acquisition of Trigeo, Wingreens and Raw Pressery, Onmove and Transin, Aknamedical and Vardhman [Health Specialties]," said Ankita Poddar, associate vice president, private credit, Anicut Capital.
"Acquisition financing now represents approximately 30% of Anicut Credit Fund's deployed capital, reflecting our conviction in backing well-structured inorganic growth strategies where asset quality, management bandwidth, and integration clarity meet our underwriting standards," she added.
Poddar said that that the investment in S&M's acquisition reflects Anicut's continued focus on backing founder-led technology businesses that generate recurring revenue and that has a differentiated capability for a durable competitive advantage.
S&M, which operates in India and abroad, including North America, UK, Australia, Central and Eastern Europe and South East Asia, said that the acquisition strengthens its position as a multi-cloud AI orchestration partner, bringing together Xencia's deep Microsoft Azure expertise and S&M's established hyperscaler and OEM partnerships.
Established in 2010, Xencia has built expertise in Microsoft technologies and brings eight Microsoft advanced specialisations across app modernisation, security, modern work, Azure infrastructure and data & AI.
The acquisition follows Saints & Masters' earlier acquisition of Kochi-based Nubinix Technologies, a cloud infrastructure provider and AWS Advanced Tier Partner.
Meanwhile, the deal comes soon after Anicut's investment in quick-service restaurant chain Wow! Momo, which is backed by New York-based Tiger Global and Malaysian sovereign wealth fund Khazanah Nasional Berhad among other investors. Recently, it extended a funding of Rs 110 crore to the company from Grand Anicut Fund IV, supporting Wow! Momo's expansion and its working capital requirements.
Previously, Anicut had invested Rs 115 crore in Wow! Momo through its second fund between 2020 and 2022, and exited the investment in May 2025.
Anicut, which manages assets worth over Rs 4,500 crore across strategies, has taken exposure across consumer, engineering services, software-as-a-service (SaaS), fintech, manufacturing, hospitality and shipbuilding across its strategies.
The firm's portfolio includes Milky Mist, The Ayurveda Experience, Mistral, Blue Tokai, XYXX Apparels, ToneTag, GNRC Hospitals, Neeman's and Agnikul.
Published by HT Digital Content Services with permission from VC Circle.