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Indian Blume Ventures raises $ 105 million in first close of fourth fund – TechCrunch

Blume Ventures said on Wednesday it had raised $ 105 million when it first closed its fourth fund, less than two years after closing its previous fund, as investment activity ramps up in the second largest market Internet to the world.

The 11-year-old firm, one of India’s largest venture capital funds, said it expects its new fund to climb to nearly $ 200 million by March of next year , date on which it expects the final closure. His current LPs include multi-family office wealth management funds, sovereigns and corporations in Asia and Europe.

With the new fund, the investment firm will continue to focus on supporting early stage startups in their pre-seed and pre-series A rounds, said Karthik Reddy, co-founder and managing partner of Blume. Ventures, in an interview with TechCrunch.

Blume Ventures – which counts e-learning platform Unacademy, fintech Slice, hyperlocal delivery service Dunzo, edtech Classplus, used car marketplace Spinny and insurer Turtlemint among its portfolio startups – supports startups and typically writes its starting check in the range of $ 1 million to $ 2.5 million.

Over the years, Blume Ventures has grown into one of the nation’s most respected venture capital firms. Even startups that don’t receive a check from the fund praise its partners, according to many entrepreneurs TechCrunch has spoken to.

Wednesday’s announcement comes at a time when Indian startups are raising record capital. Sequoia Capital India, Tiger Global, Falcon Edge Capital and SoftBank have increased the pace of their investments in India in recent quarters as they double their efforts to find winners in one of the last high growth markets.

The pandemic has also seen many companies aggressively scrambling for new strategies. But Blume Ventures seems to be taking the more conservative approach. The venture capital firm has issued about 25 checks from its previous fund and still has reserves for follow-up rounds, Reddy said.

At the height of the pandemic, Blume Ventures was “slow and thoughtful” as it was not very comfortable evaluating companies on Zoom calls, he said. “We took our time to write the last checks,” he said.

“We are receiving incredible love from the big investors,” he said, adding that it may appear that some of the startups that big companies have backed over the past few quarters have seen their valuations rise several fold. , but he pointed out some business-to-business relationships. e-commerce markets and noted that the ramp-up of their growth had been underway for three to four years.

With the company’s third fund of $ 102 million, Blume Ventures has supported a number of companies in the edtech and deep-tech SaaS spaces, he said. Reddy said it was too early to say how the third fund performed, but added that he had probably never seen his portfolio companies reach the $ 50 million to $ 100 million valuation.

“But it’s natural. If you have a good founder, a good story to tell, you don’t need a revenue boat to generate a double digit number today, ”he said, adding that by March , the company expects 10 startups in the third fund’s portfolio to be more than $ 75 million. “It’s a first experience for us. It took us a lot longer in the previous funds.

With the new fund, Blume Ventures’ largest, the company hopes to participate longer in the lifecycle of startups in its portfolio.

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