Equirus Capital's InnovateX achieves first close for debut early-stage fund

Financial services company Equirus Capital has completed the first close of its InnovateX Fund (EIF). This development comes two months after it secured an AIF (Alternative Investment Fund) Category-I license.

With a Rs 250 crore corpus, the EIF plans to make at least two investments in tech startups over the next month, with 15-18 strategic investments planned this year.

The ticket size will range from Rs 4 crore to Rs 8 crore, with a focus on software-as-a-service (SaaS), deeptech, fintech, and other emerging industries. Additionally, the fund intends to reserve 30-40% of its capital for follow-on rounds.

The fundraise saw participation from ex-founders, high net-worth individuals, as well as ultra high net-worth individuals.

EIF is managed by serial entrepreneurs Sunder Nookala and Sadhika Agarwal. Nookala is an active angel investor and ex-founder of Kwench, an employee engagement platform, which was later acquired by US-based OC Tanner. Agarwal founded Sudo Foods, a consumer brand specialising in quality plant-based alternatives.

"We have seen very encouraging participation from successful tech entrepreneurs and operators that have built and scaled businesses. This strengthens our belief in our approach towards investing in and helping build businesses the right way, truly adding value to our investments and contributing to the ecosystem," said Agarwal, early-stage VC investor at Equirus.

Equirus Capital is a mid-market, full-service financial services provider that offers investment banking, fixed-income capital market, insurance broking, institutional equities, portfolio management services, and wealth management. It was founded in 2007 by Ajay Garg, who was previously the vice president and co-head of the private equity advisory desk at DSP Merrill Lynch.