The venture capital firm Fundamentum Partnership, co-founded by Infosys co-founder Nandan Nilekani and veteran investor Sanjeev Aggarwal, has launched its third fund with a corpus of Rs 2,200 crore, including a Rs 400-crore greenshoe option, to invest in India's next generation of growth-stage technology startups.
The new vehicle reinforces Fundamentum's focus on Series B companies that have achieved product-market fit and are entering the scale-up phase, a segment the firm believes remains underserved in India's startup funding ecosystem.
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With Fund III, Fundamentum says it has become the only India-focused venture capital firm exclusively dedicated to Series B investing to launch a third fund.
Nilekani has also made his largest personal investment in any venture capital firm by anchoring the fund. Fund III will invest an average of Rs 100 crore to Rs 150 crore per company across consumer technology, fintech and artificial intelligence.
The fund will target startups in digital commerce, content, healthtech and edtech, while its fintech investments will span credit, wealth management, insurance and financial infrastructure.
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It also plans to back AI-native and AI-enabled businesses expected to drive the next wave of technology-led growth. The fund will be managed by General Partners Sanjeev Aggarwal, Prateek Jain, Mayank Kachhwaha and Sanjay Chaturvedi.
The leadership team said the firm will continue its operator-first approach, working closely with founders on fundraising, hiring, organisational design and expansion.
Founded in 2017, Fundamentum has invested in 17 technology startups, including Spinny, PharmEasy, Stable Money, AppsForBharat, FlexiLoans and Kuku.
The firm said Fund II has delivered a gross internal rate of return (IRR) of 26%, while its portfolio companies recorded average growth of 123% over the past year, underscoring its strategy of making concentrated, long-term investments in high-growth businesses.
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