The venture capital (VC) firm Blume Ventures has announced the first close of its new opportunity-cum-continuity fund, Fund 1Y. This is the VC firm’s third growth fund.
In a statement, Blume claimed it has already raised INR 200 Cr of the round’s target corpus of 400 Cr.
Furthermore, the VC firm closed its Fund IV at $290 Mn last year. Blume Ventures did not indicate the number of startups it would invest in or the average ticket size of the investments made through Fund 1Y.
The VC firm will utilize part of the funds raised to acquire strong startups from its Fund 1, such as IntrCity, Cashify, Carbon Clean, and Zopper. The remaining funds will be used to invest in new startups.
Commenting on the development, Vikram Gawande, VP of growth investments at Blume Ventures, stated, “We have a fabulous set of winners in our portfolio, and I am glad that we have been able to raise additional capital to stay invested longer and go deeper in our winners. We believe in the power of public markets and are confident that businesses such as Purplle, Zopper, Cashify and others in this portfolio are well entrenched on the path.”
In 2018, 2021, and 2022, Blume raised similar Opportunity Funds for investments in startups like Exotel, Grey Orange Robotics, Smallcase, Slice, Unacademy, and WebEngage.
Karthik Reddy, co-founder and partner at Blume Ventures, added, “Blume is one of the first VCs in India to have executed this structure with the new investors also being onshore. The current environment and our unique strategy allow us to balance the interests of our current and incoming investors and hold the best of our companies for another 3-4 years before eventual public listing and creating wealth for the local ecosystem. It’s a win-win solution for all involved.”
These funds either help Blume acquire the winning company stakes from its legacy funds to maintain these positions or invest additional capital into break-out businesses on the back of follow-on investors to create effective ways for its LP (limited partner) base to continue generating returns from high-quality companies.
Aside from its main funds, Blume also manages the Blume Founders Fund, which makes small investments in startups. Depending on the size of the round, it typically invests between $25,000 – $100,000 and does not invest beyond the first cheque.
