Godrej Industries Group, through its asset management arm, has launched a ₹2,000 crore private credit fund, which includes a green shoe option of ₹1,000 crore, marking its entry into the fast-growing asset class.
The private credit fund will raise capital through a private placement to eligible investors, including high net-worth individuals (HNIs), ultra-HNIs, family offices, and institutional investors, Godrej Capital said in a statement on Tuesday.
The fund will focus on performing businesses and provide flexible capital solutions across growth financing, acquisitions, refinancing and working capital requirements, evaluated on business fundamentals, credit quality and repayment capacity.
“Over the years, we have steadily expanded our financial services presence, first through lending and more recently through wealth management. Private credit is a natural extension for us,” said Manish Shah, non-executive director at Godrej AMC and MD & CEO at Godrej Capital. "Many well-run mid-sized businesses need capital that offers greater flexibility than conventional financing, without requiring them to dilute equity.
He added that there is an opportunity to address that need by combining Godrej’s understanding of Indian businesses with disciplined capital. “The fund also marks an important step in building our asset management capabilities and broadening our financial services portfolio,” he noted in the company’s statement on Tuesday.
The fund comes amid a new wave of domestic and global investment firms entering the space as companies seek faster and more flexible capital than traditional lenders can provide. Over the last 12-18 months, several companies, including 360 One, Motilal Oswal Alternates, True North, Edelweiss, Multiples Alternate Asset Management, Prabhudas Lilladhar and Vivriti Asset Management, among others, have launched new funds.
Godrej Capital's category-II alternative investment fund will pursue a sector-agnostic performing credit strategy focused on established private mid-market companies with demonstrated operating performance and cash flows.
The financing will be backed by hard collateral and comprehensive covenant protections while delivering attractive risk-adjusted returns and maintaining a strong emphasis on capital preservation, the firm said.
“Private credit in India is entering an important phase as established businesses increasingly seek capital tailored to their specific needs. Having invested across credit cycles, we believe enduring outcomes come from identifying resilient businesses, structuring capital thoughtfully, and maintaining underwriting discipline,” said Pavan Manchala, CIO, private credit.
He further added that the fund’s focus will be on providing flexible capital to strong businesses, backed by prudent risk management and long-term partnerships that support their growth ambitions.
The investment strategy will be anchored in direct origination, prioritizing companies with which the team has established relationships. This pipeline will support active capital deployment, minimize cash drag and maintain underwriting discipline.
The Godrej Industries Group serves over 1.4 billion people globally through a diverse portfolio of businesses across FMCG, real estate, financial services, agriculture and chemicals.
Its other business categories include residential real estate, animal feed, crude palm oil, oleochemicals, household insecticides, hair colour and air care. In FY26, it reported revenues of $7.2 billion and had a market capitalization of $19 billion.
Priyamvada is a Mumbai-based business journalist at Mint. She writes about the public and private markets with a key focus on venture capital, private equity, M&As and private credit. Her coverage also spans startups and emerging businesses.<br><br>Over the last two years, she has uncovered some of the largest deals and interviewed important decision-makers from India’s investment ecosystem. She likes to dabble across different formats like long forms and explainers. Her work has been consistently displayed on the publication's deals page, and she has also written multiple front-page stories.<br><br>Prior to joining Mint in 2024, she worked out of Reuters’ Bengaluru bureau where she extensively covered the travel, transportation, and logistics industries. Across both her stints, Priyamvada has displayed rigour for breaking news and analyzing interesting data-driven trends. She holds a postgraduate diploma from the Asian College of Journalism's Bloomberg programme. In her free time, she enjoys reading books and trying out different cuisines. She is keen to delve deeper into the various sectors she covers and is always up for a chat. You can reach out to her at priyamvada.c@livemint.com.
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