The first close of Blume Ventures’ brand-new opportunity fund, Fund 1Y, has been announced. This is Blume’s third growth fund, and of the intended Rs 400 crore ($50 million), Rs 200 crore ($25 million) has already been raised.
This new fund was launched shortly after the $290 million Fund IV closed in December of last year. According to a press release from the fund, Fund 1Y is supported by an LP base of high-caliber investors, including previous LPs from other funds managed by Blume Ventures.
Blume Ventures raised Opportunity Funds of comparable size in 2021, as well as in 2018 and 2022, with the sole purpose of increasing their stakes in market leaders like Exotel, Grey Orange Robotics, Smallcase, Slice, Unacademy, and WebEngage.
In connection with the most recent fundraising, Blume will use a portion of the funds from this new Fund 1Y to acquire startups like Intrcity, Cashify, Carbon Clean, and Zopper from their previous Fund I and affiliated investment vehicles and use the balance to add to their other funds’ current portfolios.
Karthik Reddy, co-founder, and partner at Blume Ventures said, “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”.
