Blume Ventures marks initial close of fifth fund at $175 million

Early-stage venture capital firm Blume Ventures has raised $175 million in the first close of its fifth fund. The firm aims to raise between $250 million and $275 million by the final close in early 2026.

The new fund’s investors include existing backers, new institutional investors, multilateral agencies, corporates, and family offices.

Blume Ventures said it will continue investing in early-stage Indian startups, mainly at the Seed and pre-Series A stages.

The firm has already begun investing in healthtech startups like Confido, consumer brands like Lucira, fintech ventures like PowerUp Money, and deeptech companies like iDO.

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Blume Ventures said 2025 was a key year for its investment goals, driven by strong momentum in exits and returns to investors from its first two funds.

Its Fund III and Fund IV portfolios have also demonstrated strong growth during this period with Blume anticipating an aggregate Distributed to Paid-In Capital (DPI) of over $80 million across all funds in 2025.

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“Our fourth fund was around $50 million per partner, including reserves and fees. This lets us effectively address the earlier concern that we didn’t have enough capital to double down on our winners,” cofounder and partner Karthik Reddy said.

“Fund-II has fallen a lot from its peak. We had Dunzo, Koo, and unacademy there, all of which we’ve taken significant markdowns or write-offs on,” said Reddy. Fund-III and IV have not seen any exits yet, he said.

DPI (Distributions to Paid-In Capital) is a key metric that shows how much cash a fund has returned to its investors compared to the total amount they invested.

Blume Ventures’ IPO pipeline will kick off with insurtech startup Turtlemint, which has already filed its draft prospectus with regulators.
The firm, known for backing companies like Namma Yatri and Battery Smart, joins other Indian VCs such as Accel, Speciale Invest, and IndiaQuotient in launching new funds this year.

Its previous Fund IV remains the largest so far, with a target size of about $290 million.

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