Blume Ventures sees five-fold gain from first fund
early-stage venture capital firm Blume Ventures said it has achieved returns of more than five times of invested capital from its first fund, including an extension fund. Through the Fund-I and Fund-IA (the extension fund), the firm invested a total of Rs 114 crore between 2010 and 2015.
As much as 98% of the returns were generated from 17 companies or a fifth of the portfolio of the first fund.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitIndian School of BusinessISB Digital TransformationVisitMITMIT Technology Leadership and InnovationVisitThe India-focussed firm was founded in 2010 by Karthik Reddy and Sanjay Nath with the aim to address a gap in seed-stage funding for startups during the time.
Through its first fund – a rupee-denominated fund – Blume Ventures began investing in 2011, and has backed startups such as GreyOrange, Carbon Clean, Cashify, Purplle, Zopper, Taxi For Sure and WebEngage.
The VC firm has raised four funds so far, with the latest being a $290 million fund launched in 2022.
Speaking to ET, Reddy, cofounder and partner at Blume Ventures, said despite the growing size of the funds at the firm, the bar for delivering returns has not reduced.
“In a nutshell, raising $250 million means we are signing up (to return) a billion dollars; there’s no running away from it, which means each large outcome should be over $100 million just for Blume, which means the LPs and Blume believe that we can generate profitable and exitable unicorns,” he said.
Of the total Rs 114 crore invested through Fund-I and Fund-IA, Blume Ventures has so far realised Rs 549 crore through exits, with another Rs 102 crore expected to
