Photo credit: Blume Ventures
Blume Ventures hit the first close of Fund 1Y, its new opportunity and continuity fund. The India-based VC firm raised 2 billion rupees (US$24.4 million) out of its goal of US$48.8 million.
This is Blume Ventures’ third growth fund, and it comes after the firm raised a US$250 million fourth fund last year.
“We are looking to invest in winners from our existing portfolio that are likely to hit the public markets in the next three- to five-year timeline,” Ashish Fafadia, partner at Blume Ventures, told Tech in Asia.
Fafadia mentioned that these are companies with healthy cap tables, strong margin structures, and a possibility to be profitable in the near term.
“We believe in the power of public markets and are confident that businesses such as Purplle, Zopper, Cashify, and others in this portfolio are well entrenched on the path,” said Vikram Gawande, vice president of growth investments at Blume Ventures.
How the team has evolved as well as its path to profitability, market leadership, and potential for growth without additional funding are all factors Blume will use to identify the firms it will top up with the new fund, Fafadia added.
He also shared that the company makes sure to have an external lead investor for its follow-on investments with “at least four to five times of our infusion.”
With the new fund, Blume Ventures has already invested in three companies and has committed to backing one more. “Once we do the final close next month, we will be adding two more investments,” said Fafadia.
Currency converted from rupees to US dollar: US$1 = 81.94 rupees.
See also: VC funds tracker: Two VCs raise $440m for new funds
Editing by Miguel Cordon and Jaclyn Tiu
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