Godrej Industries Group has expanded its financial services operations by entering India’s rapidly growing private credit market with a Category-II Alternative Investment Fund (AIF) targeting a corpus of Rs 2,000 crore, according to a statement released on August 18. The fund, managed through the group’s asset management company, will follow a sector-agnostic performing credit strategy. It will primarily provide financing to established private mid-sized businesses with a proven operating track record and consistent cash flows. Fund to Focus on Secured Private CreditThe investment strategy will involve financing backed by hard collateral and comprehensive covenant protections, with an emphasis on risk management and capital preservation. The fund will have a base size of Rs 1,000 crore, along with a greenshoe option allowing it to raise another Rs 1,000 crore.
Godrej AMC and Godrej Capital Managing Director and CEO Manish Shah said private credit was a natural extension of the group’s financial services business. He noted that many established mid-sized companies require more flexible funding options than traditional lenders can provide, while seeking to avoid equity dilution.
The fund will be raised through private placement and will be available to eligible investors, including High Net Worth Individuals (HNIs), Ultra High Net Worth Individuals (UHNIs), family offices and institutional investors.
Godrej Expands Financial Services PortfolioPavan Manchala, Chief Investment Officer for Private Credit, said Indian private credit is entering an important phase as established companies increasingly look for financing structures tailored to their individual requirements.He added that the fund would focus on providing flexible capital to financially sound businesses while maintaining disciplined risk management and building long-term relationships with borrowers.The launch represents a significant expansion of Godrej Industries Group’s financial services portfolio and gives the conglomerate a foothold in India’s developing private credit ecosystem. The strategy is aimed at meeting the financing requirements of established mid-market companies while offering investors access to an alternative credit investment opportunity.