Godrej Industries Group has launched a ₹2,000 crore private credit fund through its asset management arm, marking its entry into the private credit asset class, according to livemint.com. The fund includes a green shoe option of ₹1,000 crore and aims to raise capital via private placement targeting high net-worth individuals, ultra-HNIs, family offices, and institutional investors.
The fund will focus on providing flexible capital solutions to performing businesses across growth financing, acquisitions, refinancing, and working capital needs, the company said in a statement. The private placement approach allows Godrej Capital to tap into a diverse investor base, including HNIs and institutional investors, to support businesses requiring credit outside traditional banking channels.
Private credit funds have gained traction as an alternative financing source amid tightening bank lending norms and increasing demand for flexible capital. Godrej’s ₹2,000 crore fund enters a competitive market where asset managers are raising dedicated credit vehicles to serve mid-market companies. The green shoe option provides additional capital-raising capacity, reflecting confidence in investor appetite for private credit exposure.
Godrej Capital announced the fund launch on Tuesday, with the private placement process already underway. The ₹2,000 crore target, plus the ₹1,000 crore green shoe option, positions the fund among the larger private credit vehicles recently introduced in India’s growing alternative credit market.