Financial services firm Equirus Capital, on Wednesday said that it has marked the first close of its maiden venture capital fund within two months of securing an approval from SEBI for a category-I alternative investment fund (AIF).
The fund, Equirus Innovate X’s, first close saw participation from ex-founder/operator high net-worth individuals and other ultra-high net-worth individuals.
While the firm did not disclose the amount at which it hit first close, Equirus InnovateX Fund, with a target corpus of $25 million, is looking to invest in at least two companies within the next month. It also plans to make 15-18 strategic investments this year.
"We have seen participation from successful tech entrepreneurs and operators that have built and scaled businesses," said Sadhika Agarwal, early-stage VC at Equirus.
The fund will invest across sectors such as software as a service (SaaS), deeptech, fintech and other emerging industries. Its average ticket size will range between Rs 4-8 crore.
Additionally, the fund intends to reserve 30-40% of its capital for follow-on rounds in the portfolio companies.
The fund is operated by founders Agarwal and Sunder Nookala.
Nookala is also the founder of Kwench, an employee engagement platform, which was acquired by US-based O.C. Tanner. He is also an active angel investor and LP in Upekkha and PointOne Capital. He has invested in companies like Credgenics and GoComet.
On the other hand, Agarwal founded Sudo Foods, a consumer brand specialising in quality plant-based alternatives.
Equirus Capital was founded in 2007 by Ajay Garg. Besides the VC arm, the company provides investment banking services, including structured finance, capital markets and institutional equities to mid-market companies. Its focus sectors include infrastructure, financial services, consumer and healthcare, among others.
