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Thursday, October 5, 2023

Nandan Nilekani’s scale up platform to invest $227M in Indian startups

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Fundamentum Partnership plans to invest $227 million in new Indian businesses over the next five years. The scale up platform was co-founded by Nandan Nilekani, co-chairman of Infosys.

Fundamentum Partnership, a scale up platform, has secured USD 227 million (about Rs. 1,793 crore) for its second fund.

Nandan Nilekani, co-chairman of Infosys, jointly founded Fundamentum Partnership along with Ashish Kumar. Fundamentum intends to invest in four to five early growth stage Indian firms.

Kumar stated that the money would be deployed over the next five years, mostly in Series B, which is typically the second round of investing in a company once it has hit certain milestones and is on a growth trajectory.

Kumar said, “This is our second investment fund. Each year, we intend to lead or co-lead USD 25-40 million rounds and invest in 4-5 businesses.”

Fundamentum’s initial fund, worth around USD 100 million, was carefully invested in six early development stage firms, including Pharmeasy and Spinny, both of which have achieved Unicorn status.

Fundamentum’s portfolio firms have raised over USD 1 billion in follow-on rounds since the fund’s inaugural investment. Kumar has said that Fundamentum will consider investing in SaaS companies such as Bharat Apps and healthcare.

Despite the economic slump, he believes that SaaS providers have significant development potential since organisations may reduce fixed expenses such as human resources through digitalisation.

Kumar stated, “We have a good pipeline and see over 200 deals each year, with the objective of investing in 4-5 startups per year. We have already started investing in two companies. The first transaction is likely to close in approximately a month, with the second following a few weeks later.”

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