Fundamentum Partnership has launched its third fund with a target corpus of ₹2,200 crore including a ₹400 crore greenshoe option
Nandan Nilekani will be stepping down as a GP but as an anchor investor, he will be making his largest-ever investment to date in Fund III
The fund will write cheques ranging from ₹100-150 Cr and target Series B startups in consumer tech, fintech, and AI
Foundation Partnership, a VC firm that focuses on growth stage investments, has announced the launch of its third fund. The firm is targeting a corpus of ₹2,200 Cr for the fund. This also includes a ₹400 Cr greenshoe option.
The firm, which was launched by Infosys’ Nandan Nilekani and Helion Ventures’ Sanjeev Aggarwal in 2017, will continue to back startups at the Series B stage with the fund.
However, cofounder Nilekani has stepped aside from his general partner (GP) role. In a statement, Fundamentum said that Nilekani has instead anchored the fund, placing his largest investment in any VC firm till date.
The fund will be led by four General Partners: cofounder Sanjeev Aggarwal, CFO Sanjay Chaturvedi, GPs Prateek Jain and Mayank Kachhwaha.
To note, Jain was recently promoted to the GP position earlier this month after over nine years working with the firm.
The firm will be looking to back startups operating across consumer tech, fintech and AI and have been able to demonstrate a product market fit for their business. It will maintain a concentrated portfolio strategy, investing in four to five startups annually.
Under consumer tech, Fundamentum is targeting digital commerce, digital healthcare, content, and edtech. In fintech, it aims to invest in startups building around credit, wealth management, insurance, savings, and financial infrastructure.
Besides, the firm will evaluate AI-native and AI-enabled businesses as standalone investment themes and as capabilities reshaping other sectors.
Fundamentum follows an “investment + advice” model where it backs startups with both capital and mentorship. It primarily invests in tech-driven businesses across a range of sectors including consumer tech, fintech, B2B commerce, enterprise tech, and AI.
It has made 17 investments from its first two funds across sectors. Its portfolio includes companies like used-car marketplace Spinny, fixed income investment platform StableMoney and audio OTT platform Kuku FM.
According to the firm, its Fund II has yielded a gross IRR of 26% while the portfolio companies have grown 123% in the last year.
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