Bengaluru-based VC firm Blume Ventures, known for it’s early backing of some of Indians most iconic startup’s till date, has secured $175 million in the initial close of its fifth investment fund, with plans to reach a final corpus of between $250 million and $275 million by next year. The new fund, Blume Ventures Fund V, brings together existing limited partners and new institutional investors, including multilateral institutions, corporates, and family offices. Despite a tightening global fundraising environment, the firm said it remains on track to complete the final close within the next year. With Blume Ventures backing emerging domestic startups, its fresh corpus could provide a much-needed boost to sectors such as healthtech, fintech, and deep tech — areas increasingly seen as India’s next innovation frontiers.
Founded in 2010 by Karthik Reddy and Sanjay Nath, Blume Ventures has positioned itself among India’s leading early-stage investors, backing companies such as Purplle, Unacademy, Spinny, and Cashify. The firm said its latest fund will continue to focus on seed and pre-Series A investments in sectors such as fintech, consumer internet, healthtech, and deep tech. Blume has already begun deploying capital from the new vehicle into startups including Confido and Mave Health in healthtech, Lucira and Ozi in consumer tech, fintech startup PowerUp Money, and deep tech firm iDO. The firm’s investment strategy remains centered on supporting startups through early growth and follow-on funding rounds.
The fifth fund follows Blume Fund IV, the firm’s largest to date, which closed in 2022 with commitments of $290 million. Fund IV was oversubscribed and helped the firm deepen its reserves to reinvest in portfolio companies. Reddy said the firm deliberately focused Fund V on larger, long-term limited partners, steering away from smaller experimental investors. “We’re trying to stay away from small checks today, which means shutting out about $60 to $75 million of Indian money,” he said, describing the strategy as a shift toward institutional stability in a cautious capital market.
Blume’s early funds have begun returning meaningful cash to investors, marking a maturing phase for India’s venture ecosystem. The firm said its cumulative Distributed to Paid-In Capital (DPI) across all funds is projected to exceed $80 million in 2025. Fund I has already delivered returns of nearly 3.8 times invested capital, while Fund II is expected to approach a 3x multiple once pending exits materialize. A key driver of Blume’s liquidity pipeline is expected to come from public listings. Insurtech company Turtlemint, one of its portfolio startups, has already filed draft papers for an initial public offering (IPO). Other companies from earlier funds — including Purplle, IntrCity, and IDfy — are also preparing for listings over the next two years.
The firm’s Fund III and Fund IV portfolios have also recorded strong growth, supported by maturing investments in mobility, logistics, and consumer finance. Blume’s exit momentum in 2025 has been described as its strongest year for distributions since inception, aided by improved market sentiment and a revival in mid-stage fundraising activity. Blume joins a wave of Indian venture firms raising new funds this year amid a broader recovery in private-market sentiment. Recent fundraises include India Quotient’s $129 million vehicle, Prime Venture Partners’ $100 million fund, and Bessemer Venture Partners’ $300 million India-focused fund.
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