Blume Ventures makes first close of $25 million for new opportunity fund

Blume Ventures, an investment firm, has announced the initial closing of its new Opportunity Fund, Fund 1Y.

So far, The investment firm has raised Rs 200 million out of its target of Rs 400 million. This is Blume's third growth fund, following Fund IV, which was raised last year and amounted to $290 million.

The primary purpose of the Opportunity Fund is to acquire successful companies from Blume's previous Fund I and related investments. Some of these companies include IntrCity, Cashify, Carbon Clean Solutions, and Zopper. The fund will also invest the remaining capital in companies from its other funds.

Fund 1Y has received support from existing limited partners (LPs) who have invested in Blume Ventures' previous funds. These LPs have already seen positive returns on their investments in Fund I and are confident in reinvesting in Fund 1Y. It's worth noting that Blume Ventures raised a similar-sized Opportunity Fund in 2021.

The portfolio of companies backed by Blume Ventures has experienced significant growth, with key metrics showing a compounded annual growth rate (CAGR) of over 35%. This growth has led to additional funding rounds, even during a period of limited funding opportunities.

Blume Ventures has also shown a commitment to investing in industry leaders like Exotel, GreyOrange Robotics, Smallcase, Slice, Unacademy, and WebEngage by establishing Opportunity Funds in 2018 and 2022.

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