Nandan Nilekani, co-founder of Indian IT services giant Infosys, will no longer be a general partner at Fundamentum Partnership, the venture capital firm he co-founded nearly a decade ago.

Nilekani (pictured above) will step down as Fundamentum launches its third fund, aiming to raise around $200 million. It will be the fund’s anchor investor and will continue to advise the company and advise portfolio companies, its co-founder Sanjeev Aggarwal told TechCrunch.

Aggarwal described the change as “just a matter of title,” and said Nilekani would continue to advise the company, advise founders of portfolio companies and provide strategic guidance. “He is an integral part of our firm. What he enjoys most is advising the teams we support, and will continue to do so at Fund III.”

Nilekani, 71, is one of India’s best-known technology leaders. In addition to co-founding Infosys, he led the creation of Aadhaar, India’s biometric identity system, and has been a leading advocate for the country’s digital public infrastructure, including the Unified Payments Interface (UPI), a real-time payments network used by hundreds of millions of Indians. It has promoted the Open Network for Digital Commerce (ONDC), an initiative aimed at making electronic commerce in the country more open and interoperable.

Nilekani founded Fundamentum in 2017 with Aggarwal, who previously helped build Helion Venture Partners. Fundamentum backs Indian startups at the Series B stage and beyond, and its portfolio includes used car marketplace Spinny, online pharmacy PharmEasy, audio storytelling platform Kuku FM and AppsForBharat, the developer of devotional app Sri Mandir.

Nilekani did not respond to an emailed request for comment.

The leadership change also expands Fundamentum’s senior investment team. Alongside Aggarwal, Fund III will be led by Prateek Jain, who joined Fundamentum since its inception in 2017; fintech investor Mayank Kachhwaha, who joined before Fund II; and CFO Sanjay Chaturvedi, who has been with the company for almost a decade.

Fundamentum’s third fund aims to back eight to 10 early-stage startups creating consumer technology, fintech and artificial intelligence products, and issue initial checks of around Rs 100 crore (around $10.5 million) each. The company has not yet announced a first closing, but has already started deploying capital, Aggarwal said, adding that he expects the fundraising to conclude in the next 12 to 18 months.

In Fund III, Nilekani will make its largest commitment to date to a venture capital fund, Aggarwal said, although he declined to disclose the investment amount. Aggarwal said the fund hopes to raise about half of its target from international investors and the rest from Indian institutions, family offices, founders and company partners.

That balance reflects how India’s venture capital ecosystem has evolved over the past decade: Indian investors today play a much larger role in domestic funds than they did when Aggarwal helped launch Helion Venture Partners in the mid-2000s.

“When we launched Helion, there was no domestic capital in the country and all the capital came from the United States,” Aggarwal said. “Over the last five years, we have experienced strong interest from Indian investors in backing venture capital firms. […] Now you can build a venture company with national capital.”

Aggarwal told TechCrunch that Fundamentum sees India’s biggest AI opportunity in applications that build on existing global models, particularly in financial services, content and vernacular consumer applications.

The stance underlines how much of India’s AI ecosystem is focused on application-layer startups rather than those developing cutting-edge AI models, unlike in the United States and China, where companies have attracted billions of dollars to build AI models.

The leadership shakeup follows the departure of general partner Ashish Kumar, who recently launched AI-focused venture fund Fundamentum Frontier Advisors (F2A), which also has Nilekani as an anchor investor. F2A, Aggarwal said, is a separate company with no operational connection to Fundamentum, and Kumar is not involved in Fund III.

Fundamentum has made 17 investments in its first two funds. Aggarwal told TechCrunch that the company has returned about half of the capital from its first fund to investors, and that the second fund is now focused on subsequent investments.