Nilekani co-founded Fundamentum raises $227 m to deploy in 12 startups

The sector-agnostic firm will look at companies working in software-as-a-service (SaaS), healthcare, digital content and businesses that are building for the non-metro cities, like agritech sectors. Fundamentum has already identified two companies where it will infuse the fresh capital, Kumar said.

Nilekani co-founded Fundamentum raises $227 m to deploy in 12 startups
The number of investments from the second fund is double of what the first fund had made. Started in 2017, the investment firm was co-founded by Nandan Nilekani, Sanjeev Aggarwal and Ashish Kumar, and launched its first fund of $100 million, which helped it invest in six companies.

Fundamentum Partnership has raised $227 million for its second fund and plans to deploy the fresh capital in about 12 early growth-stage companies over the course of the fund’s life, co-founder and general partner Ashish Kumar told FE.


The number of investments from the second fund is double of what the first fund had made. Started in 2017, the investment firm was co-founded by Nandan Nilekani, Sanjeev Aggarwal and Ashish Kumar, and launched its first fund of $100 million, which helped it invest in six companies.

“We’ll look at backing companies in Series B or Series C which have been in their respective space for about 18 months and largely continue to invest in similar sectors like we did from our maiden fund, but with a lot more focus on the entrepreneurial capabilities. We have a significant bias for founders who want to build businesses for the next 30-40 years,” Kumar said.

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The sector-agnostic firm will look at companies working in software-as-a-service (SaaS), healthcare, digital content and businesses that are building for the non-metro cities, like agritech sectors. Fundamentum has already identified two companies where it will infuse the fresh capital, Kumar said.

In the initial stages, the plan was to raise about $150 million, but Fundamentum pushed the envelope and raised $227 million. The firm is clear that it continues to either lead or co-lead all its investments. The average investment size will be $10-$15 million, which will partake in fundraises where the rounds are between $25 and $40 million.

Kumar said about 60% of the $227 million will be used for first-time investments in companies, while 40% will be used for follow-on investments in portfolio companies. There is an increased focus on follow-on investments this time around, because in the first fund only 30% was reserved for portfolio companies, he said.

Fundamentum currently backs unicorns such as PharmEasy, an IPO-bound healthtech company, and Spinny, a platform for pre-used cars, along with smaller companies like Fareye (logistics SaaS), Ayu Health (hospital chain) and Probo (infratech).

PharmEasy holding reduced

Fundamentum has partially exited from healthtech unicorn, PharmEasy — an investment it made from its first fund — and reduced its holding by 14-15%. It initially owned around 8-9% in PharmEasy. Fundamentum is still very bullish on PharmEasy and has owned the asset for only over three years, with plans to hold it for even longer. But the partial exit happened because the pandemic ensured that these companies grew faster than initially anticipated, Kumar said.

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