Nandan Nilekani, co-founder of Indian IT services giant Infosys, has stepped down from his role as general partner at Fundamentum, the venture capital firm he co-founded nearly a decade ago. The move comes as Fundamentum launches its third fund, aiming to raise about $200 million. Nilekani will remain an anchor investor and continue to advise the firm and mentor its portfolio companies.

Fundamentum was established in 2017 by Nilekani and Sanjeev Aggarwal, who previously helped build Helion Venture Partners. The firm has grown significantly over the years, with Nilekani playing a pivotal role in its early development. Aggarwal, who will now lead the firm, has emphasized the importance of domestic capital in India’s venture ecosystem.

The venture capital landscape in India has seen a surge in interest from local investors over the past five years. This trend has enabled the creation of venture firms backed entirely by domestic capital, as highlighted by a TechCrunch report. Fundamentum’s third fund is positioned to capitalize on this growing momentum within the Indian market.

India’s venture capital sector is witnessing a shift toward increased domestic participation, with firms like Fundamentum playing a key role in shaping the ecosystem. The availability of local capital is expected to reduce reliance on foreign investors and foster the growth of homegrown startups. This development is likely to influence the trajectory of India’s tech and innovation landscape in the coming years.

As Fundamentum moves forward with its third fund, the leadership transition marks a new chapter for the firm. Nilekani’s continued involvement as an anchor investor and mentor ensures that his experience and insights will remain a guiding force. The firm’s ability to attract domestic capital may also set a precedent for other venture capital firms operating in India.