The first closure of Blume Ventures’ new opportunity fund, Fund 1Y, was announced. This is Blume’s third growth fund, and of the $400 million goal, they have already raised $200 crore with visibility for the remaining sum. This new fund was announced shortly after the mammoth US$ 290 Mn Fund IV closed last year in a market that was thought to be hostile to fundraising, reflecting the high regard Limited Partners (LPs) have for Blume Ventures and its successful track record as one of India’s largest in-house funds in the previous ten years.
A strong LP base, including returning LPs from previous funds from Blume Ventures, supports Fund 1Y. Many of Blume Ventures’ Fund I LPs are confidently returning as investors in this new Fund 1Y now that they have witnessed one full capital cycle and are beginning to see real capital being repaid.
Commenting on the development, Vikram Gawande, Vice President, of Growth Investments, 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. “
Blume Ventures funded a similar-sized Opportunity Fund in 2021, which bought out outstanding performers from Fund 1. Most of the portfolio’s core metrics have risen at 35%+ CAGR, resulting in follow-on rounds even in current market. Blume Ventures raised Opportunity Funds in 2018 and 2022 to invest in category leaders like Exotel, Grey Orange Robotics, Smallcase, Slice, Unacademy, and WebEngage. Blume Ventures will use part of the capital from this new Fund 1Y to buy strong winners like Intrcity, Cashify, Carbon Clean, and Zopper from their legacy Fund I and allied investment vehicles and use the rest to invest in their other fund winners.
Karthik Reddy, Co-founder and Partner, Blume Ventures, added, “It’s a global practice for Fund Managers like Blume to provide exits to the existing LPs by finding new investors who can buy out a combination of assets from the original Fund. 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 allows 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 create wealth for the local ecosystem. It’s a win-win solution for all involved.”
About Blume Ventures
An early-stage business fund called Blume Ventures supports startups by providing both financial support and hands-on coaching. They frequently make investments in tech-focused firms with big market impacts and entrepreneurs who are fixated on finding complex solutions. As the top platform that finds, finances, nurtures, and adds value for India’s most promising emerging entrepreneurs, they want to “blume”!