Equirus InnovateX
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Equirus InnovateX
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
Upgrade | Upgrade | Upgrade |
View on the Fund
Equirus InnovateX seeks to invest in early-stage tech companies (a space that is rapidly growing and creating substantial value in India). Similar to all VC funds, investors need to be comfortable with a high level of risk-reward, longer lock-ins and a lack of valuation transparency until exits. While the space is very interesting, this is Equirus's first fund offering in this space. Their founder Ajay Garg however is a seasoned investment banker with a past track record of actively investing in early-stage tech, and the fund relies on his past experience & network in the space. Given the risks associated with VC funds, and the fact that this is the first fund offering of Equirus in this space, this fund is primarily recommended for investors with a higher level of risk tolerance, seeking the potential outsized returns that are possible in sucessful VC funds.
Strategy
Tech-focused VC Fund
Fund's Strategy View
Equirus InnovateX Fund invests in early-stage tech-focused VC fund (investing in pre-seed to Series A deals). The fund focuses on three main areas: Software & SaaS, Deep Tech, and Fintech, with a focus of investing in teams with proven track records that are targetting growth in large addressable markets. The fund essentially seeks to invest in the rapidly growing digital & tech space in the Indian markets.
Fund Performance
Performance is highly based on power law, where a handful of investment make up for majority of returns. Network and ability to source deals is a key aspect of unlisted returns.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Equirus InnovateX |
Performance as of: 31-Jan-26 | Inception Date: 01-Feb-24 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Ajay Garg | 4-star rated FM
Managing Director | 33 yrs Experience | 19 yrs at current firm
Past Experience: DSP Merill Lynch (VP), Mape Advisory Group (Co-Founder), Kwench (Director), CRIF India (Director)
Ajay Garg is the founder of Equirus Capital. He is a veteran investment banker, with over 22 years of experience in Investment Banking. He is acknowledged as being amongst the top dealmakers in the country. He started his career with DSP Merrill Lynch where he was involved with several landmark deals during his stint there between 1996–2002. Prior to setting up Equirus in 2007, he was the group CEO of a leading investment bank which he co-founded. Ajay holds a first degree in engineering and is a postgraduate in management from IIM, Ahmedabad.
Ashutosh Tiwari | 3-star rated FM
CIO | 22 yrs Experience | 16 yrs at current firm
Ashutosh Tiwari has over 16 years of capital-markets experience, having been with Equirus Securities since 2009 - starting as an analyst and rising to Head of Research and later Managing Director & Head of Institutional Equities. Prior to Equirus, he worked as an analyst at KR Choksey.
IME's Review of Equirus PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
Upgrade | Upgrade | Upgrade | Upgrade |
View on AMC
Equirus PMS had a strong start with its initial small-cap strategy, which aligned well with the group’s core strengths. However, over the past two years, the platform has faced significant investment-team churn, with two CIO-level exits in quick succession. This instability has coincided with a deterioration in performance, raising concerns around continuity, consistency of the investment approach, and execution
AMC's Pedigree
Equirus PMS, founded in 2016, is part of the fast-growing financial business of the Equirus group. They have established niches in other businesses and are becoming known for strong performance in small-cap investments, making them a strong AMC for investors seeking specialists in this area.
AMC Team
Equirus has seen significant churn in its investment leadership over the past two years. In 2024, Viraj Mehta exited and was replaced by Sahil Shah (ex-Edelweiss MF), who himself left the firm in November 2025. The CIO role has now been taken over by Ashutosh Tiwari, a long-tenured Equirus resource. The repeated churn in senior leadership over the past two years is a clear red flag and raises concerns around the stability and consistency of the investment team. The founder, Ajay Garg, is more directly involved in the InnovateX AIF, as compared to the PMS funds.
Investment Philosophy
Equirus PMS focuses on buying growth at the right price (GARP) and specializes in investing in smaller companies, aligning with their broking expertise.
AMC Background
Equirus PMS is the portfolio management arm of the Equirus Group, a financial services platform founded in 2007. The group began with investment banking, expanded into institutional equities in 2010, and launched its PMS offerings in 2016. Equirus Wealth has notable strategic shareholders, with Rakesh Jhunjhunwala and Federal Bank holding approximately 13% and 20% stakes respectively.
Investment Philosophy & Process
Equirus PMS follows a blended quality and value approach, with the objective of investing in relatively under-researched businesses that possess strong long-term growth potential but are available below intrinsic value. The philosophy is best described as GARP (Growth at the Right Price).
Investment Framework
- Growth: Earnings growth driven by a combination of revenue expansion and margin improvement.
- Financial Strength: Preference for companies with low or no debt, including deleveraging situations with improving coverage ratios.
- Profitability: Focus on businesses delivering high ROCE, supported by improving margins and/or asset turnover.
- Management Quality: Emphasis on integrity, promoter skin-in-the-game, and prudent capital allocation practices.
- Attractive Valuations: Targeting companies with low analyst coverage and institutional ownership, where the market underappreciates long-term potential.
Focus on Small & Mid-Cap Opportunities
While the framework itself is broad-based, the strategy has a natural tilt towards smaller companies, reflecting the AMC’s institutional broking expertise and the core strengths of the fund manager, Viraj Mehta. This positioning has also been supported by the strategy’s performance since inception.
Suitable For
Investors seeking exposure to a small- and mid-cap–oriented asset manager with a disciplined GARP-style investment approach.
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