Blume Ventures announces the first close of its fourth fund at $105 million.

Blume Ventures announces the first close of its fourth fund at $105 million.

Blume Ventures, one of India’s most prominent and oldest domestic venture capital firms, has announced the first close of its fourth fund. So far, the firm has raised $105 million for a possible $200 million fund, which Blume expects to close soon. At that size, it could easily be one of the largest India-based funds ever.

The fund, which was established in 2010 with the goal of bridging the gap between angel funding and institutional startup investment, has a number of high-profile companies in its portfolio.

Blume Ventures, which began with a $20 million Fund 1 in 2011, has since backed companies such as TaxiForSure (acquired by Ola), online learning platform Unacademy, fintech Slice, hyperlocal delivery service Dunzo, and edtech Classplus, among others. Blume Ventures typically writes checks in the $1Mn to $2.5Mn range and invests in pre-Seed rounds.

Blume expects to close the fund at around $200 million by March-April next year, according to managing partner Karthik Reddy, making it Blume’s largest fund to date, more than doubling its $105 million third fund. From its third fund, the fund has invested in 25 companies, with some money remaining for new/follow-up investments.

“There is no precedent for the current situation.” We must be prudent but not conservative, as we have previously advised our founders. “We’re trying to be deliberate about it,” Reddy said.

The conclusion could not have arrived at a better time. This year, India produced a record number of unicorns, even outnumbering China in the year 2021. Bottom-of-the-pyramid fundraising has also increased, with Tiger Global, Sequoia India, and others writing checks at an unprecedented rate. Following the pandemic, education technology, financial technology, and health technology have quickly emerged as hot investment sectors. Deep-tech startups continue to attract attention, even in the absence of a pandemic.

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Blume Ventures will continue to invest in pre-seed to pre-Series A technology startups in sectors such as consumer internet, small and medium business marketplaces, and global opportunities in software and enterprise technology addressed by Indian founders through the new fund.