Equirus Marks First Close Of Maiden Early Stage VC Fund

Investment banking services company Equirus on Wednesday (February 21) said it has marked the first close of its maiden early stage venture capital fund within a month of securing the Securities and Exchange Board of India’s (SEBI) approval for a category I alternative investment fund (AIF).

However, the firm did not disclose the amount at which it made the first close.

The Equirus InnovateX Fund’s (EIF) first close saw participation from high net worth individuals (HNIs) and ultra high net worth individuals (UHNIs).

The fund, which aims to raise at least $25 Mn (around INR 207 Cr), will back sectors majorly across SaaS, deeptech and fintech, with a focus on business-to-business (B2B) space. 

With an average ticket size between $500K and $1 Mn, it seeks to invest in at least 15-20 startups which have sustainable business models and strong monetisation strategies with capabilities of solving critical problems in large addressable markets. 

The fund is looking to invest in two tech-based startups by next month. It also plans to back around 15-18 startups this year, with an average ticket size of INR 4 Cr to INR 8 Cr.

EIF’s head of tech and digital Sunder Nookala said, “EIF’s successful first close is a testament to the vibrant ecosystem of visionary founders and supportive investors. We are excited to leverage this momentum to identify and nurture the next generation of tech innovators, driving positive change across industries.”

The VC fund intends to reserve 30-40% of its capital for follow-on rounds, ensuring continued support for portfolio companies as they scale and grow.

The fund was launched last month by Equirus which was founded by Ajay Garg in 2007. The Equirus Group is a B2B investment banking and related advisory firm covering equity capital markets, debt capital markets, structured finance, PE, M&A, insurance broking, and wealth products.

In addition, it also offers portfolio management services and research along with institutional equities. It claims to have conducted more than 240 transactions across mergers and acquisitions, private equity, IPOs, etc. 

In addition to Equirus, earlier this year, funds for startups were floated by Aroa Ventures ($50 Mn), Amicus ($200 Mn target), among others.

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