Fundamentum Frontier Advisors (F2A), a fund focused on growth-stage artificial intelligence (AI) and deep-tech companies, has secured ₹3,000 crore in subscriptions and received investor approval to expand its corpus to ₹3,500 crore, following commitments that exceeded its initial target.
The fund, which had initially targeted ₹2,000 crore, including a ₹1,000 crore greenshoe option, received subscriptions exceeding ₹3,500 crore. It is negotiating the final ₹500 crore and expects to complete the process in the coming weeks, Vivek Singla, partner at F2A, told businessline.
“We have closed, rather we have held an intermittent close of the fund at about ₹3,000 crore and we are well on our way to get to ₹3,500 crore,” Singla said.
Nandan Nilekani has anchored the fund with an investment of ₹200 crore. Indian investors account for 70 per cent of its capital base, while overseas investors contribute the remaining 30 per cent.
F2A plans to invest in 12-15 companies over the next two to three years, with initial cheques ranging from ₹100 crore to ₹200 crore. The fund expects to deploy capital in around seven companies this year, with three investments in advanced stages of discussion for the next quarter.
“We will be investing into companies which are already well on their runway to developing technology or product. And there’s a clear roadmap available. Our capital will go more towards the scale-up side of things,” Singla said.
The fund is tracking companies across semiconductors, advanced materials, defence technology, robotics and automation, alongside AI applications. It is also evaluating businesses in the data centre supply chain, including thermal management and cooling systems.
Building India’s deeptech supply chain
F2A is focusing on companies that have moved beyond the research stage, demonstrated their technology and are ready to scale. Its approach is centred on backing businesses addressing specific domestic requirements rather than competing directly with global technology leaders developing foundational AI models.
“Where India will chart out its own journey is more, I would say, verticalised AI, where you’re building for a very specific use case,” Singla said.
The fund is also looking at opportunities in the infrastructure supporting AI adoption, including semiconductor chip design and data centre cooling. Singla said capacity creation typically precedes the expansion of applications when a new technology emerges, making the underlying infrastructure an important investment opportunity.
He drew a parallel with India’s automotive components industry, arguing that deeptech and advanced manufacturing could create a similar ecosystem of specialised suppliers serving multiple industries.
“The idea here is that in the next couple of years, you will see a lot of action on the physical side, on the picks-and-shovels side,” he said.
F2A also plans to reserve capital for follow-on investments, allowing it to support portfolio companies through subsequent funding rounds and reduce founders’ dependence on repeatedly raising money from new investors.
“The idea is that after we come in, the companies or the founders really don’t have to scramble for capital any longer,” Singla said.