Green’s Dictionary of Slang

a religious fundamentalist (usu. assumed to be an Islamist), thus attrib.

2000

M. Hamid Moth Smoke 92: A lot of skin is on display, like something out of a fundo’s nightmare or, more likely, vision of paradise [ibid.] 112: His face has begun sprouting fluff like a caterpillar spinning a cocoon. I’d better teach him how to use a razor before he takes on the fundo look.