Blume Ventures raises $175M in first close of Fund V
The venture capital firm is targeting to raise between $250 million to $275 million in the final close of the fund by early 2026.
Venture capital firm Blume Ventures on Wednesday raised $175 million in the initial close of its fifth fund. It is targeting to raise between $250 million and $275 million in the final close of the fund by early 2026.
The new fund’s limited partners include existing marquee investors, new institutional investors, multilateral institutions, corporates, and family offices.
Blume Ventures will continue its existing thesis of backing early-stage Indian startups, primarily in Seed and pre-Series A stage, it said in a statement.
The VC firm has already started deploying capital in healthtech firms such as Confido, consumer companies like Lucira, fintech startups like PowerUp Money, as well as deeptech firms such as iDO.
According to the company, 2025 was a pivotal year for the firm’s disbursement goals marked by momentum in exits and distributions to LPs across Fund I and Fund II.
Its Fund III and Fund IV portfolios have also demonstrated strong growth during this period with Blume anticipating an aggregate Distributed to Paid-In Capital (DPI) of over $80 million across all funds in 2025.
DPI is a key performance metric that measures the cumulative cash distributions a fund has returned to its investors relative to the capital they invested.
Additionally, the firm’s IPO pipeline is set to launch with insurtech Turtlemint’s listing. The company has filed its draft red herring prospectus with regulators.
Blume, which has backed companies like ride-hailing firm Namma Yatri and battery swapping network operator Battery Smart, joins a growing list of Indian VC firms that have raised new funds this year, including Accel, Speciale Invest, and IndiaQuotient, among others.
The firm’s previous fund, Fund IV, remains to be its largest fund with a target corpus of about $290 million.
Edited by Megha Reddy