New Delhi, Oct. 13 -- Fundamentum Frontier Advisors (F2A), the Nandan Nilekani-anchored deeptech investment firm, is increasing the domestic allocation of its maiden fund by Rs.500 crore to Rs.2,500 crore after stronger-than-expected demand from local investors, underscoring growing interest in a sector that has traditionally struggled to attract capital.

The firm is now targeting a Rs.3,500 crore fund, up from its original Rs.3,000 crore plan, with the additional capital coming from domestic limited partners (LPs), its top executives told Mint. The remaining Rs.1,000 crore is allocated to an offshore vehicle.

"We've seen a lot of demand from domestic limited partners, which is why we've increased this portion to about by an additional ...