Mumbai, Mar 29 (PTI) Canadian institutional investor La Caisse de depot et placement du Quebec (CDPQ) has made an initial investment of USD 20 million in the first growth fund of Nandan Nilekani promoted Fundamentum. Also Read - Monsoon Session Day 2: Lok Sabha Passes Essential Commodities Bill to Raise Farmer Income, Boost Agri Sector | Highlights

The investment in Fundamentum’s first growth fund (Series B) is a new strategic investment for CDPQ, enabling it to diversify its activities in India, a priority market, the company said in a statement. Also Read - 'Jammu And Kashmir to Reopen For Tourism Soon', Says J&K Administration

In addition to the investment in Fundamentum, CDPQ said it will also explore direct investments in Fundamentum’s portfolio companies. Also Read - COVID-19: Centre Announces Guidelines For Unlock 2, Lockdown Till July 31 in Containment Zones

According to CDPQ president and chief executive officer Michael Sabia, India ranks as the world’s third largest technology start-up hub and this new partnership will enable the selected start-ups to scale their businesses.

“We view this as the beginning of a long-term partnership leading to subsequent rounds of investments,” he said.

Fundamentum is a scale-up platform for mid-stage technology companies in India founded by Nilekani and Sanjeev Aggarwal the founder of Daksh and Helion Venture Partners, alongside a network of Indian entrepreneurs and key investors.

With a target size of approximately USD 100 million, Fundamentum Partnership – Fund I is expected to invest an average of up to USD 15 million in select startups.

It will focus on investments in consumer and enterprise technology businesses across retail, logistics, travel and outsourcing.

“We will greatly benefit from CDPQ’s knowledge of global trends and deep investment expertise. Both Fundamentum and CDPQ are bullish about the opportunity to build a host of large and enduring world-class organisations out of India, in the next decade and beyond,” said Nilekani.

This is published unedited from the PTI feed.