Blume Ventures has announced the first close of its new opportunity fund, Fund 1Y. This is Blume’s third growth fund. It has raised Rs 200 crore ($25 million). The target is Rs 400 crore ($50 million).
This new fund follows a $290 million Fund IV closing in December last year. Fund 1Y has strong backing from existing LPs in Blume Ventures’ other funds, according to a press release.
Blume Ventures raised a similar-sized Opportunity Fund in 2021. They also raised funds in 2018 and 2022, solely for doubling down on their investments. The focus was on category leaders like Exotel, Grey Orange Robotics, Smallcase, Slice, Unacademy, and WebEngage.
Blume will use the latest fundraise to invest in startups like Intrcity, Cashify, Carbon Clean, and Zopper. They will also buy out these startups from their legacy Fund I and allied investment vehicles. The remaining capital will be used to invest in their other fund’s existing portfolio.
Karthik Reddy, co-founder and partner at Blume Ventures, believes in balancing investor interests. Their strategy involves holding promising companies for 3-4 years before going public. This approach benefits both current and incoming investors, creating wealth in the local ecosystem. It’s a win-win solution.
