The Caisse de dépôt et placement du Québec has invested approximately $26 million in Fundamentum, a venture capital fund company based in India.

The initial investment is in Fundamentum’s first growth fund.

The fund has a target size of about $130 million and will to focus on investments in consumer and enterprise technology businesses in the areas of retail, logistics, travel and outsourcing. The fund expects to invest an average of up to almost $20 million in select startup companies.

Read: Caisse invests in expansion of Quebec-based software company

In a news release, the Caisse said the investment allows it to diversify its activities in India, which it describes as a priority market. It will also explore investing directly in Fundamentum’s portfolio companies.

“The Fundamentum management team has a remarkable track record in the technology sector,” said Michael Sabia, president and chief executive officer of the Caisse. “By fostering long-term investments and acting as a mentor to companies, the team provides an entrepreneurial approach that is fully aligned with that of CDPQ. As India ranks as the world’s third-largest technology startup hub, this new partnership will enable the selected startups to scale their businesses and participate in one of the fastest growing parts of the country’s economy. We view this as the beginning of a long‑term partnership leading to subsequent rounds of investment.”

Said Fundamentum co-founder Nandan Nilekani: “Both Fundamentum and CDPQ are bullish about the opportunity to build a host of large and enduring world-class organizations out of India, in the next decade and beyond. I expect this long-term partnership to deliver tremendous value to the technology entrepreneurship ecosystem in the country.”

Read: India a hot destination for pension fund dollars

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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