Fundamentum Frontier Advisors raises ₹3,000 crore for AI, deeptech bets

The Nandan Nilekani-backed growth-stage fund plans to invest ₹100-200 crore each in 12-15 AI and deeptech companies over the next two to three years, with a hard cap of ₹3,500 crore

Investment management platform Fundamentum Frontier Advisors (F2A) — which has seen Infosys cofounder Nandan Nilekani join as anchor investor and mentor — secured aggregate subscriptions of ₹3,000 crore for further inroads into growth-stage artificial intelligence (AI) and deeptech.

 

The capital was raised from both Indian and overseas investors across two regulated vehicles.

 

Given the continued investor demand beyond the available capacity, F2A has received limited partner (LP) approvals to increase the overall hard cap to ₹3,500 crore and accommodate some of the investors who could not participate within the current fund size.

 

“We are seeing strong investor conviction in AI and deeptech companies being built out of India, and ₹3,000 crore in subscriptions reflects that,” said Ashish Kumar, general partner, F2A. 

 

He added, “We plan to deploy the corpus across 12–15 investments over the next two-three years, with cheque sizes of ₹100–200 crore. Our focus will remain on businesses with a clear technological edge, where AI and deeptech are building scale and defensibility.”

 

F2A believes India is entering an investment supercycle in AI and frontier technologies, creating an opportunity to build globally-significant technology businesses and intellectual property from India.

 

This includes India-domiciled companies addressing deeptech revenue pools across both Indian and international markets.

 

“More Indian companies are now building deeptech products for global markets, with India as their engineering and commercial base,” said Debraj Banerjee, general partner, F2A.

 

He added, “Having worked with such companies from their early years, I have seen how much the right capital matters once the technology is validated and customers begin to scale. We believe that is the stage at which F2A can help them become category leaders.”

 

The fund will invest across digital consumer companies using AI and other frontier technologies; enterprise software and AI-led applications; and deeptech infrastructure and engineered systems.

 

Vivek Singla, another general partner at F2A, said equity capital is only one part of what a growth-stage technology company needs.

 

He said that at this stage, the founders are building for scale but are some time away from a credible path to the public markets.

 

They are looking for investors who can bridge that journey with them.

 

“We see that journey taking a few years for the companies we back, and we intend to stay invested through it. We will work alongside founders to open doors to customers, strategic partners and talent,” added Singla.