Blume Ventures has announced the first close of its new opportunity fund, Fund 1Y. This is Blume’s third growth fund, and it has already raised Rs 200 crore ($25 million) of the Rs 400 crore ($50 million) target.
This new fund comes soon after the close of a $290 million Fund IV in December last year. Fund 1Y is backed by a high-quality LP base, with existing LPs in Blume Ventures’ other funds participating again, the fund said in a press release.
Blume Ventures raised a similar-sized Opportunity Fund in 2021 and also raised Opportunity Funds in 2018 and 2022 solely for doubling down on their investments in category leaders such as Exotel, Grey Orange Robotics, Smallcase, Slice, Unacademy, and WebEngage.
As a part of the latest fundraise, Blume will invest part of the capital from this new Fund 1Y to buy out startups such as Intrcity, Cashify, Carbon Clean, and Zopper from their legacy Fund I and allied investment vehicles and use the remaining to invest in the existing portfolio of their other funds.
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.”
