Equirus InnovateX Fund (EIF), the venture capital division of the Equirus Group, has successfully completed the final close of its first B2B technology fund, securing $18.3 million. This milestone, following its initial close in February 2024, reinforces investor confidence in India's burgeoning early-stage technology sector. The fund is poised to empower a new generation of startups focused on solving complex enterprise challenges.
Strategic Investment Mandate
EIF directs its capital towards startups in the seed to pre-Series A funding stages, concentrating on high-growth sectors like deep technology, software-as-a-service (SaaS), and fintech. The fund strategically targets companies that have already launched their products and are actively working to achieve product-market fit. This approach ensures that investments are made in ventures with demonstrated potential and a clear path to commercialization.
The investment philosophy centers on partnering with founders who are tackling structurally complex business problems through innovative solutions. EIF prioritizes companies building sustainable and defensible business models that are supported by well-defined distribution strategies. This focus on fundamental strength aims to foster long-term value creation and market leadership for its portfolio companies.
Experienced Leadership and Investor Backing
The fund attracted a diverse group of domestic and international investors, many of whom are seasoned founders and operators themselves. Notable backers include Girish Gaitonde of Xoriant and M.R. Jyothy of Jyothy Labs, who contribute not only capital but also invaluable operational expertise and market access. This network provides a significant strategic advantage to the startups EIF supports.
At the helm of the fund are Krishna Jha, Sunder Nookala, and Sadhika Agarwal, who collectively manage investment decisions and portfolio oversight. Their combined experience as operators and investors provides a deep understanding of the challenges founders face during the critical early stages of growth. This leadership is instrumental in guiding portfolio companies toward sustainable success and institutional maturity.
Deployment Status and Future Outlook
EIF has already demonstrated significant momentum, having deployed over one-third of its total corpus into seven promising startups. The current portfolio includes innovative companies such as Pointo, Datazip, GreenStitch, and NeverInstall, reflecting the fund's diverse B2B focus. The firm plans to expand its portfolio to a total of up to 15 companies.
With the fund now fully subscribed, the team plans to invest the remaining capital over the next 12 to 18 months. The strategy involves selectively adding new, high-potential startups while actively supporting the growth and scaling of its existing portfolio companies. This balanced approach is also laying the groundwork for the launch of a subsequent fund in the future.
An Operator-Led Partnership Model
As former operators, the fund's leadership understands the critical inflection points founders encounter, from achieving product-market fit to building out an organization. Sunder Nookala emphasized the fund's commitment to working closely with its portfolio to strengthen fundamentals and build enduring institutions. This hands-on support extends to enterprise access, regulatory guidance, and senior-level hiring assistance.
Krishna Jha noted that as India's startup ecosystem matures, a new wave of founders is tackling more audacious and complex problems. EIF positions itself as a long-term partner for these entrepreneurs, leveraging its operator-centric perspective to guide them on the journey from an early idea to a category-defining company. This partnership model is designed to foster resilience and lasting impact.
The final close of the Equirus InnovateX Fund at $18.3 million marks a significant development for India's B2B technology startup ecosystem. It not only provides crucial early-stage capital but also offers a robust support system built on deep operational experience. This successful fundraise signals strong investor belief in the potential of Indian entrepreneurs to build globally competitive enterprise solutions.