India’s Blume Ventures raises $105 million in the first close of its fourth fund

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Bloom Ventures said Wednesday it has raised $105 million in the first close of its fourth fund, less than two years after it finalized its previous fund, as investment activity in the world’s second-largest Internet market intensified. Is.

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The 11-year-old firm, one of the largest Indian venture funds, said it expects its new fund to reach close to $200 million by March next year, with the final closing expected. Its current LPs include some multi-family office wealth management funds, sovereigns and some corporates from Asia and Europe.

With the new fund, the investment firm will continue to support early-stage startups in their pre-seed and pre-Series A rounds, said Karthik Reddy, co-founder and managing partner, Bloom Ventures, in an interview with Nerdshala.

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Bloom Ventures — which counts online learning platform Unacademy, fintech Slice, hyperlocal delivery service Dunzo, edtech Classplus, used-car marketplace Spinny, and insurance Turtlemint among its portfolio startups — supports early-stage startups and typically requires $1 million Writes his opening check in range. $2.5 million.

Over the years, Bloom Ventures has grown into one of the most respected venture firms in the country. According to startups Nerdshala spoke with, startups that don’t get checks out of funds also say a lot about their partners.

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Wednesday’s announcement comes at a time when Indian startups are raising record amounts of capital. Sequoia Capital India, Tiger Global, Falcon Edge Capital and SoftBank have increased the pace of their investments in India in recent quarters as they doubled down on finding winners in one of the past great growth markets.

The pandemic has seen many firms scramble aggressively for new strategies. But it looks like Bloom Ventures follows a more conservative approach. Reddy said the venture firm has written about 25 checks from its previous funds and still has some reserves.

At the peak of the pandemic, Bloom Ventures was “slow and thoughtful” because it was not very comfortable assessing firms on Zoom calls, he said. “We took our time to write the last few checks,” he said.

“We are getting amazing love from big investors,” he said, noting that while it may seem like some startup big firms have seen valuations jump manifold in recent quarters, they have made some business-to-business transitions. Pointed to the e-commerce marketplace and noted that their growth build-up had been in the works for three to four years.

With the firm’s $102 million third fund, Bloom Ventures backs several firms in the edtech and deep-tech SaaS space, he said. Reddy said it’s too early to say how the third fund has fared, but added that it has probably never seen its portfolio firms reach valuations of $50 million to $100 million.

“But it’s natural. If you have a good founder, a good story to tell, you don’t need the burden of revenue to go into the double-digit round today and grow,” he said, adding that the firm should not be able to grow by March. 10 portfolio startups are expected to be rated. The third fund will be over $75 million. “This is a first-time experience for us. In the past funds took us too long. ,

With the new fund, the largest for Bloom Ventures, the firm hopes to prolong the lifecycle of its portfolio startups.

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