Nandan Nilekani, co-chairman of Infosys, co-founded Fundamentum Partnership has secured USD 227 million (about 1,793 crores) for its second fund and plans to invest in 4 to 5 early stage Indian firms.
Fundamentum Partnership co-founder and companion Ashish Kumar noted that the fund will be invested over the next five years, largely in Series B, which is typically the second round of investing in a startup once it has accomplished certain milestones and gotten on the growth trajectory.
“This is our second venture. “Every year, we want to lead or co-lead USD 25-40 million rounds and invest in 4-5 firms,” Kumar said.
Fundamentum’s inaugural fund, which closed at USD 100 million, was strategically invested in six early-stage firms, including Pharmeasy and Spinny, both of which have achieved Unicorn status.
Fundamentum’s portfolio companies have raised approximately USD 1 billion in follow-on finance since the fund’s initial funding. Kumar has said that Fundamentum will consider investing in Software-as-a-Service (SaaS) companies such as Bharat Apps and healthcare.
Amid the economic crisis, SaaS providers have high growth prospects since businesses can decrease fixed costs like human resources via digitisation, he stated.
“We have a solid pipeline and see around 200 deals per year, to invest in 4-5 startups per year.” We have already begun investing in two firms. “One transaction is scheduled to close in about a month, and the second in a couple of weeks,” Kumar said.
Fundamentum has also made investments in logistics SaaS companies Fareye, Ayu Health, and Probo.