Equirus InnovateX Fund Announces Final Close of B2B Tech Fund

Equirus InnovateX Fund (EIF), the venture capital division of Equirus Group, has successfully closed its inaugural B2B tech fund, raising a total of Rs 166 crore. The initial close of this fund was previously announced in February 2024. According to EIF, the fund primarily supports seed and pre-Series A companies that are developing in deep tech, SaaS, and fintech sectors, generally focusing on teams that have completed product development and are progressing towards product-market fit.

Investment Focus of Equirus InnovateX Fund

The primary goal of the fund is to collaborate with founders who are addressing significant challenges with sustainable and defensible solutions. Furthermore, the close of this fund attracted a mix of domestic and international investors, many of whom provide not just financial support, but also valuable operational insights and access to markets. EIF has secured backing from industry founders and leaders, including Girish Gaitonde, M.R. Jyothy, Dhimant Bhayani, Raj P., Shankar Vailaya, and Nitin Seth.

Management Team and Portfolio Development

The management of the fund includes Krishna Jha, Sunder Nookala, and Sadhika Agarwal, who bring extensive operational experience as investors and founders. They are tasked with driving investment decisions and overseeing the portfolio aligned with the fund’s strategic focus. EIF reports that it has allocated over one-third of its total corpus to seven startups from Fund I, with a goal to support a portfolio of up to 15 companies.

Active investments included in this portfolio are Pointo, Datazip, GreenStitch, CtrlB, Consuma AI, RSPL, and NeverInstall. The remaining capital is anticipated to be invested over the next 12 to 18 months.

Beyond Capital: Support for Founders

EIF goes beyond just providing capital, as it actively partners with founders on various aspects such as enterprise access, navigating regulatory environments, senior hiring, and preparing for future fundraising efforts. The fund places a strong emphasis on governance and generating long-lasting value. With the closure of its maiden fund, EIF will concentrate on expanding its existing investments, selectively incorporating new startups, and fostering deeper relationships with founders and longer-term capital partners as part of their strategy for the next fund.

Registered as a Rs 166 crore SEBI Category I AIF, the fund focuses on early-stage investments, specifically from seed to pre-Series A. It continues to back founders involved in SaaS, deep tech, and fintech, predominantly at the post-product and pre-PMF stages. The fund is committed to investing in impactful businesses across a variety of sectors.