Pharmeasy and Spinny-backer Fundamentum launches its second fund after raising $227 million to back ready-to-scale Indian startups in consumer internet and enterprise software sectors.

Continuing its approach of concentrated bets, Fundamentum plans to deploy its second fund to lead or co-lead $25-40 million rounds while investing in 4-5 start-ups each year. For the new fund, about 25 percent of the money has come from the Fundamentum Team.

Launched in 2017 by Nandan Nilekani and Sanjeev Aggarwal, Fundamentum's first $100 million fund was deployed across a handful of early growth stage startups, including Pharmeasy and Spinny, which went on to achieve unicorn status or $1 billion valuation.

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Some of the VC firm’s other investments from its first fund include Fareye (logistics SaaS), Ayu Health (network of high-quality hospitals) and Probo (trading on future events).

"At Fundamentum, we tested the waters with the first fund. We now intend to go deeper into our investment program, focus on entrepreneurs creating built-to-last companies out of India, and steadfastly support them in their exciting journey," said Nandan Nilekani, co-founder and General Partner, Fundamentum Partnership.

Besides leveraging the entrepreneurial experience of its founders, Fundamentum follows the philosophy of betting on a few, but high-conviction startups. It assesses at least 200 deals before investing in just 4-5 startups every year.

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"We plan to continue the same strategy as used in Fund I – investing in tech-driven enterprises from India," said Sanjeev Aggarwal, co-founder, and General Partner, Fundamentum Partnership, adding that the fund will focus on disruptive startups in emerging sectors such as Bharat Apps, SaaS and Clean-tech.

Fundamentum's fundraising comes at a time when India-dedicated venture capital and private equity funds are refilling their coffers after investing a record $35 billion in Indian startups last year. According to the Silicon Valley Bank report, India-focused VC and PE growth funds have raised $14 billion in the first half of 2022.

First Published:Aug 19, 2022 3:55 PM IST