Early-stage VC fund Blume Ventures announced another investment in Bombay-based Covacsis, a software company founded in 2009 and incubated at IIT Bombay's Society for Innovation and Entrepreneurship (SINE). The startup has raised around Rs 2.5 crore from Blume Ventures, India Venture Partners and an undisclosed foreign VC fund.
Business Standard first reported the investment.
Covacsis stands for Collaborative Value Creation by Strategic & Innovative Solution and it enables tracking of machinery and productivity in real time. The real time information assessment and dissemination helps merchants to save money and improve overall efficiency.
Covacsis was founded by an IIT Bombay product, Tarun Mishra, who was COO at Mahindra Logisoft Business Solutions prior to starting Covacsis, Not its usual sector of interest, Blume backed Covacsis due to its unique idea and great acceptability in the market. "The company is very close to being an enterprise software company. Basically, they track efficiency with the help of software and analytics and with its solutions it has got some well known clients like Sun Pharma, Ipca Labs, Cipla, Godrej Industries, Tata Chemicals, Welspun, Raymond Limited and Ruby Mills within a short span of time. Within a short span of using Covacsis solution, the clients have seen remarkable improvement," said Karthik Reddy, co-founder, Blume Ventures. Another reason that made Blume believe in the company's performance was that though it was bootstrapped by Mishra completely, its product was so good that it had started garnering significant revenue by the time the investors came in.
Reddy said though this particular company does not operate in an area where Blume has invested previously, the trend that it follows now is to build interest in one sector and then make three-four investments in it. Last month, in its quarterly report, Blume disclosed four of its fresh investments which cut across sectors like mobile apps, e-commerce and B2C portals.
(Edited by Prem Udayabhanu)