India’s leading homegrown early-stage venture capital firm, Blume Ventures, has announced the final close of Blume Ventures Fund III at US $102 million. After a first close in late 2018, the final close was completed in December 2019. Blume started in 2011 raising an entirely domestic 100cr fund from HNIs; subsequently it raised a $60m fund (Rs ~400crs) in 2016, and now a third fund of $102m (Rs ~715crs). In the 15 year old VC industry, Blume becomes the first entirely homegrown fund to raise a third fund and raise over a $100 million in a single fund.
Blume’s newest fund will continue to back early stage startups focusing on the two distinct opportunity sets that India offers, opportunities that leverage the mobile-led explosion of the Indian digital-first economy, and Indian engineering and science translated to global market opportunities.
Sectorally, we’ve broadened our ‘built in India for global markets’ B2B thesis. Thanks to a rise in the quality and availability of talent in leading-edge technologies like AI/ML, we’ve expanded our investment team resources to cover Enterprise Software/SaaS as well as space/drones, robotics, core sciences and other deep tech areas.
– Sanjay Nath Co-founder, Blume
“With Fund III, Blume continues to strengthen its global investment partnerships. In addition to being a Draper Venture Network (DVN) member fund and co-founding Arka Venture Labs (one of India’s first b2b x-border accelerator funds), we also set up a R&D investment program ‘BUDHA’ with our Japanese strategic partner UTEC, to seed the next wave of innovation in deep/hard tech.” The venture capital firm has already made over 10 investments from the third fund.
Fund III will be invested across 25-30 companies. With opening investment cheques of $500K-$1.25M, and reserves per winning company running into $3-5 million, Blume is now signalling larger ownership needs, and a longer & deeper commitment to winners from the portfolio. This belief is being further played out with an Opportunity Fund, that was raised only for Fund I and II winners.
The venture capital firm has already made over 10 investments from the third fund. Some of these investments include healthcare aggregator HealthAssure, astrology-related services provider Taaraka, fashion rental portal Stage3, fintech startup Jai Kisan, agritech and robotics platform TartanSense, among others. From its first and second funds, the firm has invested in startups such as Unacademy, Grey Orange, Spinny, Turtlemint, Dunzo, Healthifyme, Purplle, and Railyatri.
The firm has also seen some exits, including Mettl, NowFloats, Minjar, and Threadsol. Early-stage startup investors are raising larger funds than ever and continue to be bullish about the Indian startup ecosystem.
This fund has also allowed Blume to expand its ambition and presence with offices in Delhi and Bengaluru over the last 18 months, which have rapidly scaled to teams of five members each.