Blume Ventures Raises Rs 200 Million for Opportunity Fund, Fund 1Y, Targets Rs 400 Million

• ByStartupStory     |    June 23, 2023

Blume Ventures, a leading venture capital firm, has announced the first close of its new Opportunity Fund, Fund 1Y, having successfully raised Rs 200 million out of its Rs 400 million target. This marks the third growth fund from Blume, following the success of Fund IV, which raised $290 million last year. The firm plans to utilize a portion of the capital to acquire stakes in high-performing companies such as IntrCity, Cashify, Carbon Clean Solutions, and Zopper from its previous Fund I and related investment vehicles. The remaining amount will be invested in companies across its other funds.

Karthik Reddy, Co-founder and Partner at Blume Ventures, explained the rationale behind the move, stating, “It’s a global practice for fund managers like us to provide exits for existing LPs by finding new investors to buy a combination of assets from the original fund. The current environment and our unique strategy enable us to balance the interests of our current and new investors, hold the best of our companies for another three to four years before a potential IPO, and create wealth for the local ecosystem.”

Fund 1Y has garnered strong support from existing limited partners (LPs) of Blume Ventures’ other funds, who have seen promising returns on their capital. The firm’s Fund I LPs, having experienced a full capital cycle, are confident in returning as investors for Fund 1Y. This support from its LP base showcases the trust and belief in Blume Ventures’ investment strategy.

Blume Ventures has previously raised similarly sized Opportunity Funds, with significant growth witnessed across its portfolio. Many of the companies in its portfolio have achieved a Compound Annual Growth Rate (CAGR) of over 35%, attracting follow-on rounds during funding winters. The firm has also demonstrated a commitment to investing in category leaders, exemplified by its investments in Exotel, Grey Orange Robotics, Smallcase, Slice, Unacademy, and WebEngage through Opportunity Funds raised in 2018 and 2022.

Vikram Gawande, Vice President of Growth Investments at Blume Ventures, expressed confidence in the portfolio companies, stating, “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.”

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