Blume Ventures has announced the first close for its new opportunity fund, Fund 1Y, by securing ₹200 crore out of the targeted ₹400 crore.

This new fund comes soon after the close of a $290 million Fund IV last year in a market perceived as adverse to fundraising, the company said.

As a part of this fundraise, the VC will invest part of the capital from this new Fund 1Y to buy out winners such as Intrcity, Cashify, Carbon Clean, and Zopper from their legacy Fund I and allied investment vehicles and use the remaining capital to invest in the existing winners of their other funds.

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“It’s a global practice for fund managers such as ours to provide exits to existing LPs by finding new investors who can buy out a combination of assets from the original fund. Moreover, we are one of the first VCs in India to have executed this structure with the new investors also being onshore,” said Karthik Reddy, Co-founder and Partner, Blume Ventures.

Previous opportunity funds

Fund 1Y is backed by a quality LP base, with existing LPs in Blume Ventures’ other funds participating again. The VC raised a similar-sized opportunity fund in 2021, which brought out strong performers from Fund 1, and a majority of the portfolio’s underlying metrics have grown at more than 35 per cent CAGR, resulting in follow-on rounds even in this market.

Similarly, it also raised opportunity funds in 2018 and 2022 solely to double down on its investments in category leaders such as Exotel, Grey Orange Robotics, Smallcase, Slice, Unacademy, and WebEngage, according to a company press release.