Blume Ventures, a Mumbai based investment firm, announced early in March 2021 that it has raised Rs. 350 crore for its new secondary fund, Fund 1x, that was launched together with Avendus Capital.
Avendus Capital is an investment banking firm founded in 1999 with Gaurav Deepak, Ranu Vohra and Kaushal Aggarwal as its founders.
Purpose of the funds: Blume Ventures plans on buying out its own holdings in some of its older portfolio companies and increasing its support in some of its existing investments.
What’s unique about the current secondary fund is that it gives an option to some of Blume’s early investors (limited partners) to exit and replaces them with a new set of investors. This essentially could be a solution to investors showing high interest in Indian startups and at the same time expecting a timely exit.
In the current structure, six companies from the previous fund have been packed into a new portfolio, which is being taken up by the new fund. This enables Blume Ventures to continue its investment in some of the promising companies while at the same time offering a timely exit to its limited partners.
About Blume Ventures:
Blume Venture was founded in the year 2011 with Karthik Reddy and Sanjay Nath as its co-founders. It provides pre-series A and early-stage funding to budding technology ventures.
Typically Blume Ventures holds its investments for a period of 8-10 years before making a successful exit.
“At Blume, we back founders who are obsessed with solving hard problems, usually one that triggers a fundamental change in consumer behaviour and one impacting large markets”–Blume ventures, in its Philosophy.
What the founder has to say:
“We believed that the capital markets were harsh to some of our best Fund I founders and we wanted to back them further as they began to shoot up to their true potential. In Avendus, we found a willing partner to structure this. We are excited and hope to see 4-5x growth in each of the portfolio companies from here in a short 4-5 year period.”—Karthik Reddy, founding partner at Blume Ventures.
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