Tech veterans Nilekani and Aggarwal’s enterprise in India is elevating a $227 million second fund.


Fundamentum Partnership, a enterprise capital agency co-founded by Nandan Nilekani and Sanjeev Aggarwal, has raised $227 million for its second fund as high-profile business veterans have doubled down on backing startups within the South Asian nation.

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The fund plans to make use of the capital by investing in 4 to 5 startups annually. Fundamentum, which generally helps startups within the Series B stage and above, will goal to guide or co-lead rounds of between $25 million and $40 million, Aggarwal informed Thealike.

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Nilekani, co-founder of IT companies large Infosys, who has been instrumental in a number of of India’s digital initiatives, together with Aadhaar biometric identifiers, and Aggarwal, who based the now IBM-owned enterprise course of outsourcing agency Daksh, launched Fundamentum in 2019 to help shopper and software-focused startups.

“The digital acceleration caused by the pandemic has dramatically increased spending on technology around the world. India has everything you need: capital, entrepreneurs, success stories and liquidity. In this decade, we will see how entrepreneurs will have a significant impact on the country as the digital intensity of society grows,” Nilekani mentioned in a press release.

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“We are at the initial stages of this journey. At Fundamentum we tested the water with the first fund. We now intend to delve deeper into our investment program, focusing on entrepreneurs building companies for the ages from India and continually supporting them on their exciting journey.”

The agency, which has valued greater than 500 startups, has made half a dozen investments in order that the startups in its portfolio have collectively raised greater than $1 billion in subsequent rounds. Fundamentum’s portfolio consists of on-line unicorn pharmacies Pharmeasy and automotive market Spinny.

The new Fundamentum is backed virtually completely by Indian entrepreneurs, he mentioned. “We believe entrepreneurial capital is excellent capital. It makes money++,” Aggarwal mentioned.

“Given that we are all entrepreneurs, we have such a bias,” he added, not ruling out the chance that Fundamentum could open a fund for institutional traders sooner or later.

The new fund comes at a time when startups in India and past are discovering it more and more tough to lift capital on phrases which are seen as favorable in comparison with final yr’s bull cycle norm. Aggarwal mentioned many high-profile early-stage VC corporations have closed new rounds in India in latest quarters, so there’s sufficient dry powder there to proceed supporting younger startups.

For startups within the progress stage, issues are a little bit totally different. “The growth capital that used to come to India has dried up,” he mentioned. Aggarwal acknowledged the altering momentum within the business, saying valuation requests have adjusted and deal circulate has remained robust. “So now you have time to do some extra due diligence and invest at the right prices,” he mentioned.



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