Nilekani co-founded Fundamentum launches second fund; raises $227 million

Nandan Nilekani co-founded, Fundamentum Partnership has raised $227 million for its second fund which would be invested in early growth stage Indian start-ups.

Fundamentum would fund enterprises that have attained product-market fit and have developed momentum in their scale-up journey, said the venture firm on Friday.

Fundamentum would lead or co-lead a $25-40 million round, investing in 4-5 start-ups each year. The firm would focus on tech-driven enterprises in the consumer internet and enterprise software space in India. It would back domestic entrepreneurs who were set to move from the start-up stage to the scale-up phase.

Co-founder and General Partner, Nandan Nilekani said the pandemic brought digital acceleration has dramatically increased technology spending across the world. India had all the ingredients in place—capital, entrepreneurs, stories of success, and liquidity.

“In this decade, we will see entrepreneurs making a material impact on the country at scale as the digital intensity of society increases. We are in the early stages of that journey,’‘ he added.

He further said, “We tested the waters with the first fund. We now intend to go deeper into our investment programme, focus on entrepreneurs creating built-to-last companies out of India, and steadfastly support them in their exciting journey.”

Fundamentum’s first fund, $100 million, was deployed strategically in early growth stage startups, including Pharmeasy and Spinny which have attained Unicorn status. Post the fund’s initial investment, Fundamentum’s portfolio companies have collectively raised over $1 billion in follow-on rounds, the firm claimed.

“The second fund is significantly oversubscribed. Entrepreneur quality is the single biggest factor that determined the success of a company. We like to back missionary entrepreneurs who have an unwavering focus on customer experience,’‘ said Sanjeev Aggarwal, Co-founder and General Partner, Fundamentum.