Fundamentum: Nandan Nilekani’s Fundamentum raises $227 million for a second fund

Nandan Nilekani’s venture capital fund Fundamental partnership raised its second fund with $227 million in capital, largely from local entrepreneurs and their personal investment offices.

Nilekani, co-founder of

and Chairman of its Board, established Fundamentum in 2017 with Sanjeev Aggarwal of Helion. His first fund was nearly $100 million. The Canadian pension fund and institutional investor La Caisse de dépôt et placement du Québec (CDPQ) invested there as a limited partner (LP) in 2018.

Nilekani’s Fundamentum will continue to lead and co-lead Series B and Series C transactions with the new fund, which is more than double the size of its previous fund. The new fund is also in talks with institutional investors and if these are successful, the size of the fund could be increased to around $250 million.

A quarter of the new fund’s capital comes from Fundamentum’s own team. Besides Nilekani and Aggarwal, Ashish Kumar is another co-founder and general partner of the fund, alongside Pratik Jain, director of the venture capital fund.

Fundamentum backed six startups with its first fund, including unicorns such as PharmEasy and used car sales platform Spinny. Nilekani said the fund will continue to make concentrated bets and not take a “spray and pray” approach to investing in startups.

“We believe Series B and Series C continue to be underserved. We have also created an advisory board to help these companies with strategy, marketing, leadership development…because it goes back to our philosophy of giving not just money, but more,” said Nilekani, co-founder and general partner of the fund. He added that the fund would seek to invest in consumer technology companies and software-as-a-service (SaaS) startups. of business.

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“Our portfolio companies have raised over $1 billion in follow-on funding from high-profile investors and it’s also a signal to inbound investors when we support them,” Aggarwal said.

Fundamentum will seek to lead or co-lead investment rounds in the range of $25-40 million, in which it will typically invest between $10-15 million. Clean technologies and “Bharat” applications are among other areas the fund is looking to invest in, according to its management team.

Fundamentum’s second fund comes at a time when top venture capital funds like
Sequoia Capital, Lightspeed Venture Partners, Accel and others have racked up a record $4.7 billion in dry powder in the first six months of the year, up from $2 billion last year, according to ET.

Kumar said the new fund would invest more frequently — around four to five times a year — than the previous fund, which made one or two bets a year.

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