Equirus' ₹1,500 cr fund skips loss-making D2C, signals tighter capital for consumer startups

Equirus Capital's new ₹1,500 crore PE fund (₹750 cr base + ₹750 cr greenshoe, 7-yr horizon) will back only profitable late-stage consumer, fintech and healthcare firms. Late-stage funding fell 38% to $5.6bn in FY26, while L'Oréal, HUL, Marico, Emami and ITC drive a D2C consolidation wave.

— Source publishedSat, 27 Jun, 2026, 06:03 IST·First seen Sat, 27 Jun, 2026, 06:06 IST·Source Mint · Companies

What happened

Equirus Capital's new ₹1,500 crore PE fund will back profitable late-stage consumer, fintech and healthcare companies, avoiding loss-making D2C bets. Signals

Key facts

  • ₹1,500 crore fund
  • ₹750 crore base
  • ₹750 crore greenshoe
  • 7-year horizon
  • late-stage funding -38% to $5.6bn FY26
  • D2C M&A wave

Why this matters

With growth capital drying up and L'Oréal/HUL/Marico/Emami/ITC already on the hunt, this is a buyer's window to acquire scaled-but-stranded D2C brands at disciplined valuations.

What to watch

  • Equirus first deal announcement — sets valuation benchmark for profitable D2C
  • Q2 FY27 late-stage funding data: another -20% would confirm secular reset
  • FMCG major announcing >2 D2C acquisitions in a quarter
  • Any marquee D2C down round >40% — signals capitulation
  • Mamaearth/Honasa stock performance as proxy for listed D2C sentiment
  • RBI/SEBI moves on startup ESOP liquidity or pre-IPO frameworks
  • Map D2C cap tables with >24mo since last raise and burn >₹5cr/month — these are acquisition targets within 6 months
  • Track HUL/ITC/Marico/Emami strategic investment arms for deal velocity uptick
  • Identify D2C brands posting first profitable quarter — premium IPO/PE candidates
  • Pressure-test portfolio brands on EBITDA path; sunset categories with negative unit economics
  • Engage Equirus, A91, Fireside on co-investment criteria to benchmark profitability thresholds

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