F2A Marks First Close of Rs 3,000 Cr AI and Deeptech Fund
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Khushi Jain
- October 13, 2026
Fundamentum Frontier Advisors (F2A), the venture capital firm founded by former Fundamentum cofounder Ashish Kumar, has marked the first close of its growth-stage AI and deeptech fund at Rs 3,000 Cr, making it India’s largest fund in the sector.
F2A said its limited partners (LPs) have also approved plans to increase the fund’s size to Rs 3,500 Cr in response to investor demand beyond its current capacity.
The fund has raised capital from domestic and overseas investors and will deploy the corpus through two vehicles. F2A plans to invest in 12-15 companies over the next 2-3 years, writing cheques ranging from Rs 100 Cr to Rs 200 Cr each.
The firm said it is in the advanced stages of closing three investments within the upcoming quarter.
“More Indian companies are now building deeptech products for global markets, with India as their engineering and commercial base. 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 start to scale. We believe that is the stage at which F2A can help them become category leaders,” said general partner Debraj Banerjee.
F2A’s Founding Team and Investment Strategy
F2A was founded by Fundamentum Partnership partner and cofounder Ashish Kumar earlier this year. Kumar, Banerjee and Vivek Singla are the firm’s general partners, while Fundamentum’s former general partner Nandan Nilekani is the anchor investor for the fund.
F2A’s investment strategy focuses on three areas: consumer businesses leveraging AI and frontier technologies, enterprise software, and deeptech infrastructure and engineered systems.
The fund targets India-domiciled companies generating revenue from domestic and global markets.
Despite the involvement of team members such as Kumar and Nilekani in both organisations, Fundamentum and F2A are separate legal entities.
Fundamentum itself launched a new fund this year, its third, with a target corpus of Rs 2,200 Cr.
Deeptech Funding Gains Investor Interest
Deeptech has emerged as a focus area for investors, with funding for the sector nearly tripling to $290 Mn across 28 deals in the quarter ending September 2026. This compares with $105 Mn across 29 deals in the same quarter a year earlier, according to Inc42’s Indian Tech Startup Funding Report, Q3 2026.
Several investors have announced plans to back the sector in recent months. These include South Korean gaming giant KRAFTON, global venture capital investor Accel and Mumbai-based early-stage VC AUM Ventures.
KRAFTON has outlined plans to invest in Indian AI and deeptech startups, while Accel has closed its ninth India fund with a $550 Mn corpus to invest in AI and deeptech. AUM Ventures has also marked the first close of its deeptech-focused fund at Rs 225 Cr, against a target corpus of Rs 750 Cr.
F2A’s fund expansion comes amid growing investor interest in Indian deeptech companies, particularly those developing technology for global markets.
FAQs
1. What is the size of F2A’s AI and deeptech fund?
Fundamentum Frontier Advisors has marked the first close of its fund at Rs 3,000 Cr. Its limited partners have approved plans to increase the fund size to Rs 3,500 Cr.
2. Who founded Fundamentum Frontier Advisors?
F2A was founded by Fundamentum Partnership partner and cofounder Ashish Kumar earlier this year.
3. How much will F2A invest in each company?
F2A plans to write cheques ranging from Rs 100 Cr to Rs 200 Cr each and invest in 12-15 companies over the next 2-3 years.
4. Which sectors will F2A target?
The fund focuses on consumer businesses leveraging AI and frontier technologies, enterprise software, and deeptech infrastructure and engineered systems.
5. How much did deeptech startups raise in the quarter ending September 2026?
Deeptech startups raised $290 Mn across 28 deals in the quarter ending September 2026, compared with $105 Mn across 29 deals a year earlier, according to Inc42’s Indian Tech Startup Funding Report, Q3 2026.
