Inside All In Capital’s INR 300 Cr Bet On India’s Next Wave Of Founders

Did the funding headwinds finally relent in 2024, paving the path for startup growth? The previous year might not have presented a booming picture for all. But a close look revealed funding growth in certain stages. For instance, India’s startup ecosystem saw a surge in seed stage funding, reflecting growing investor confidence in early stage ventures. Seed stage startups secured around $893 Mn, a 31% increase from the $681 Mn raised in 2023.

Despite the rise in funding, seed stage deals declined by 7% to 433 in 2024 from 467 in 2023. It suggests a trend towards larger investment per startup, as evidenced by the 25% rise in average ticket size to $1 Mn.

Nevertheless, the overall environment indicates a growing momentum, and institutional investors are quick to leverage it. Take, for example, All In Capital, a pre-seed (and seed stage) venture capital firm, which recently launched its second fund targeting INR 200 Cr. This comes with an INR 100 Cr greenshoe option, bringing the total corpus to INR 300 Cr. The firm has secured a first close at INR 85 Cr ($11.6 Mn), with investments from family offices in India and abroad.

All In Capital was set up in 2022 by Kushal Bhagia, founder of an edtech startup, former director at upGrad and former CEO of First Cheque. He was joined by Aditya Singh, former principal at Stride Ventures. Their motto: Going all in for founders who go all in.

Its Fund II is set to invest in 50 startups in the next three years, with individual funding of INR 5 Cr or less. While All In Capital maintains a sector-agnostic approach, it will prioritise investments in consumer tech, deeptech, fintech, and consumer brands. Notable portfolio companies to date include Taakat (FMCG), MedMitra (AI solutions for healthcare professionals), Spill Games (mobile gaming), Krvvy (shapewear and lingerie) and Mixar (AI-driven 3D modelling and animation).

The 11 Mn corpus of its first fund (INR 95 Cr) has been nearly deployed across 51 startups. The portfolio includes NewMe, SuperNova, Pier Sight, MeetRecord, Hectar Global, Magma, Salty, Reint, Karban and Volt Money, among others. “Approximately half of these companies have secured follow-on funding from prominent investors like Accel and B Capital, which has bolstered investor confidence and paved the way for Fund II,” said Bhagia.

All In Capital will continue to back early stage founders with capital, mentorship and access to a robust network of more than 150 startup founders. During an interaction with Inc42 as part of the Moneyball series, Bhagia outlined the firm’s strategy for Fund II — Larger cheques, bigger stakes and leading investment rounds for greater impact.

Reflecting on his transition from entrepreneurship to venture capital, Bhagia talked about his role at First Cheque, a scout fund that targets pre-seed startups through a network of founders. This model, inspired by similar initiatives in Silicon Valley, was among the first of its kind in India (more on that later).

The Genesis Of All In Capital: How The Journey Unfolded

In 2017, Bhagia was running his edtech startup, Nayi Disha Studios, but the business failed to grow as anticipated. The setback led him to join another edtech giant, upGrad, where he experienced rapid growth — hundreds of employees and a significant rise in revenue within two years.

Although it was a rewarding journey, he soon realised that he thrived in smaller teams and preferred the challenge of building a business from the ground up. After leaving upGrad, he explored new ventures — testing ideas, conducting pilots and engaging with potential cofounders. However, none of these opportunities worked out.

Around the same time, IndiaQuotient incubated First Cheque, a pre-seed investment initiative for startup founders at the earliest stage of their entrepreneurial journey. Recognising Bhagia’s background as a founder and his experience in scaling a company, the investment firm approached him to lead First Cheque. “Once I started, I realised I loved the work. It felt natural, like a fish-in-water moment,” he reflected.

As CEO of First Cheque, Bhagia spearheaded investments using a model inspired by Silicon Valley’s scout funds, where established venture firms back founders who identify and recommend investment opportunities. IndiaQuotient came up with the vision and the capital, while Bhagia executed the strategy.

The programme quickly established a strong network of founders, including leaders from Sharechat, TaxiForSure, MPL and MindTickle. When any of the founders in its network recommended a startup, First Cheque would co-invest, contingent upon that founder putting in at least INR 5 Lakh. The platform would then contribute INR 10-20 Lakh, with Bhagia ensuring thorough due diligence before finalising each investment.

By the end of 2021, he backed more than 100 startups through this initiative. His personal branding also grew, driven by content creation (he ran a YouTube series) and thought leadership on founder angels, cementing his reputation in the early stage investment space. Founders increasingly sought his presence on cap tables beyond their involvement with First Cheque.

Its portfolio saw notable success, with more than 10 startups raising Series B rounds of $10-15 Mn or more. Among these were interesting ventures such as Eplane, which scaled significantly in revenue and valuation, and Giva, a short-form video edtech platform, and a clutch of deeptech and fintech startups. Within five years of its launch, First Cheque returned about 40% of the fund in cash, with some investments yielding substantial returns.

“At that point, it made sense to start my fund,” said Bhagia. “I could source high-quality deals, evaluate them and secure investment opportunities — core skills essential for running a fund.”

In 2022, Bhagia and Aditya Singh joined forces to set up All In Capital. The two met online in 2019 and co-invested in many deals. Singh also launched BookMyForex, which MakeMyTrip later acquired in an all-cash deal. After his startup stint, he completed his MBA and worked for Amazon before joining Stride, a venture debt fund. He was keen to shift to early stage funding, and their shared outlook on investing made the partnership a natural fit.

Reflecting on the early days at All In Capital, Bhagia said, “I was already seeing some of the best early stage companies coming on board. Many founders were coming through referrals — former colleagues, employees or batchmates of those I had backed. This founders’ network kept expanding and strengthened our deal flow.”

He highlighted the role of family offices and later-stage funds in supporting the fund. “Family offices that co-invested with us recognised the companies we backed and continued investing. Later-stage funds looking for early-stage exposure saw value in placing LP checks in a smaller fund, creating a strong network effect.”

He underscored the role of family offices and late stage funds in bolstering All In Capital. “Family offices that co-invested with us recognised the potential of the startups we backed and continued investing. Late stage funds seeking early stage exposure also saw value in placing LP cheques in a smaller fund to create a powerful network effect.”

This is a common practice by late stage VCs to gain early access to high-potential startups, diversify risk and build founder relationships. This strategy enhances deal flow, strengthens market reputation and creates a network effect wherein early stage funds attract top founders, benefiting all investors.

A Deep Dive Into Fund I’s Performance & Fund II’s Investment Thesis

In the past 18-24 months, All In Capital has consistently pursued its strategy of leading funding rounds instead of co-investing. “Early stage investments require a firm belief in what you are doing. We have found that confidently leading these rounds and committing to our investments lead to the best outcomes,” said Bhagia.

The sector-agnostic fund has invested in more than 50 startups through its first fund, with capital distributed across six major sectors — AI and SaaS, consumer internet, deeptech, fintech, consumer brands and gaming. According to the founding team, the consumer-focussed ventures and deeptech startups have performed exceptionally well.

It has also witnessed significant liquidity, with some investments seeing returns within two years. However, Fund I had limited resources for participation in follow-on rounds. While small follow-on cheques were written where feasible, there was no substantial pool, and larger investments typically came from external investors such as Accel, Fireside Ventures, Alpha Wave, Elevation Capital, and B Capital.

The investment thesis for Fund II is aligned with the original vision — identifying promising startups early on and issuing the term sheets first. But with Fund II in place, All In Capital aims to strengthen its position as a key early stage investor in the Indian startup ecosystem.

“As we moved to our second fund, we wanted to be more aggressive with our investments,” said Bhagia. “By increasing cheque sizes and securing larger stakes, we can play a significant role in shaping the startups we back.”

Accordingly, the VC player has adjusted its approach, raising cheque sizes to INR 3-5 Cr. For companies raising INR 5-9 Cr, All In Capital plans to contribute at least half of the round while enabling additional participation from other investors. It will also take part in follow-on rounds of its portfolio companies.

It spells a distinct shift from Fund I, where it often acted as the de facto lead investor but had to cap cheque sizes at INR 1.5-2 Cr due to insufficient capital, making it challenging to lead larger rounds.

The firm’s philosophy is clear at this point. It will only operate as a lead investor, even at the pre-seed stage. Bhagia noted that in previous instances when the rounds grew larger — say, INR 10-15 Cr — the firm was forced to pull back. But with Fund II, it is now positioned to lead rounds up to INR 6 Cr, sticking to the lead investor model and reinforcing its investment thesis.

All In Capital is also refining its selection process to zero in on startups and founders who will align with its long-term vision. Again, this process has evolved since the early days of Fund I, when the VC was still in an exploratory mode and took considerable time to find the right opportunities.

Three Core Strategies That Shaped All In Capital’s Playbook 

Focus on ‘non-obvious’ founders and ideas

All In Capital has carved a niche as a vital early-stage investor for ‘idea stage’ founders who may not attract the attention of prominent venture capital firms. Suppose two founders in their mid-20s, armed with strong academic credentials and a few years of research experience, approach a major VC with a potential concept. They are unlikely to secure funding at such an early stage.

Large funds typically focus on entrepreneurs with proven track records, those with prior exits or extensive industry experience, as their cheques run into millions of dollars. These big funds are not well-suited for high-risk nascent ventures — particularly those led by first-time founders or building deeptech solutions prone to several product iterations or failures. This is where All In Capital steps in.

As Bhagia said, “Many established seed funds have scaled up significantly, managing $20-300 Mn funds. So, it is structurally difficult for them to invest in truly early stage ventures.”

Credible investment frameworks

All In Capital’s investment thesis is structured around broad sectoral coverage, and each sector is evaluated using a tailored decision-making framework. For instance, in SaaS and AI, the focus is on vertical startups specialising in a single industry, developing deep solutions within that domain. The VC player looks for software firms that work on AI-driven experiences, which are then assessed for innovation and scalability.

A startup’s ability to expand globally is a key criterion, and preference is given to founders with international exposure, established overseas relationships, or early traction in foreign markets. The investor further delves into evaluating founders, business potential, sector-specific performance metrics and other criteria, including revenue scale, customer acquisition costs, branding and marketing capabilities and market demand.

The fund framework for a sector determines the number of investments, stakes to be acquired and capital allocations.

“We invest in non-obvious founders and non-consensus ideas. Before funding, the fund looks for technological differentiation and/ or a clear ‘why now’. We can quickly dig into startups that come to us because of our wide network of founders who are domain experts. Most of the investments happen at the pre-revenue stage, and many of these startups are pre-product,” said Bhagia.

Bhagia further explained that a startup typically takes six to 12 months to raise its next round of funding. So, All In Capital keeps tabs on startups raising capital to access diverse opportunities.

“We track every startup that raises funds, which allows us to evaluate and invest in the best opportunities,” he added.

Rigorous due diligence and fast decisions

All In Capital stands out for its speedy investment decisions, as it typically offers a term sheet within a week or two. In some cases, deals are finalised within a week after a few discussions and an in-person meeting. Once committed, the VC firm moves quickly to provide funding and drive business growth.

“Founders appreciate our ability to act swiftly and remain transparent throughout the process. They can expect clarity within a short timeframe, which frees them to focus on building their businesses instead of waiting indefinitely for investor decisions,” said Bhagia.

Despite its rapid pace, All In Capital upholds a rigorous due diligence process. The firm combines deep sector expertise with comprehensive background checks of founders. The investment team constantly tracks industry trends, engages with experts and draws on insights from its portfolio to evaluate opportunities. It also consults with industry professionals and potential users within its network to assess market fits.

Founder evaluation includes a thorough background check based on conversations with former employers, colleagues and industry peers. The firm also taps into its network of late stage investors to identify potential red flags.

“Speed does not mean cutting corners on diligence,” emphasised Bhagia. “Our network and sector-specific research help us validate founders and their ideas quickly, making confident decisions without unnecessary delays.”

In addition, its portfolio startups get access to All Stars, an internal platform connecting them with a network of investors, advisors and operational resources. Building and maintaining strong founder-VC relationships also attract new entrepreneurs. “We don’t need to sell ourselves. Our founders do that for us,” he chuckled.

AI Set To Transform Software Experiences Across Industries

AI startups continue to attract investments, but assessing their true potential is more important. Instead of focussing on whether they have built their AI models from scratch or integrated third-party solutions, the real criterion should be the impact of technology on end users.

“The first question should always be: What problem does it solve, and how does it enhance customer experience? If a task that once took hours can be completed in minutes, that is a game changer,” said Bhagia.

Once the user impact is established, the focus shifts to technical depth and execution. Companies that create highly personalised AI experiences for specific user segments tend to develop more substantial products.

The founder shared a couple of use cases to underline how value addition mattered in such cases. All In Capital invested in an AI-powered English-learning platform called SuperNova. It enables users to speak English through structured interactions, helping professionals like hotel employees improve their communication skills. Rather than its AI capabilities, the VC decided to back it as the startup offered a scalable, compelling learning experience.

Similarly, in healthtech, MedMitra was developing an AI solution to streamline patient history-taking to improve consultation efficiency. To Understand its impact, the VC firm consulted with medical professionals in its network before investing.

AI is poised to redefine software experiences, making them more personalised and intuitive across industries. While AI-driven SaaS solutions for niche B2B applications are gaining traction in sectors like healthcare, fintech and edtech, consumer-facing AI products in India are still nascent.

“We have not seen many AI startups targeting direct-to-consumer experiences in India yet, but it’s only a matter of time,” said Bhagia.

Even in sectors like consumer goods where AI is not a core component, companies increasingly leverage the technology for marketing, content generation and operational efficiency. In healthtech and enterprise SaaS, AI’s role is expanding rapidly.

All In Capital plans to maintain its investment pace by targeting one or two startups every month. “We have already backed three companies this year and will look for more AI-driven startups with a meaningful impact,” said Bhagiya.

A Strong Understanding Of Ecosystem Gaps Is Crucial For Better Investments

Bhagia asserts that a strong and nuanced understanding of the gaps in India’s startup ecosystem enables the VC player to make more informed investment choices.

“India remains a supply-constrained economy as far as the number of startups go. Despite its size, the country is home to just 300-400 significant ventures operating in banking-related areas, IT and beyond. Going by global standards, that number is quite low,” he said.

Historically, India faced a capital shortage and lacked an entrepreneurial culture. For a long time, the most ambitious career path for top graduates was to move abroad. “A decade ago, the pinnacle of success for a high-achieving student was heading to Stanford and joining Facebook. But now, they are launching companies and raising millions to grow their businesses,” the founder pointed out.

This shift is driven by a generation of young Indians who no longer view traditional corporate careers as the sole path to success. The influx of talent into the startup ecosystem means more companies can thrive simultaneously. Unlike a fixed-sum game, India’s economic growth allows multiple ventures to succeed, provided they address real problems.

According to Bhagia, the real bottleneck is not a dearth of capital but talent — individuals willing to take the entrepreneurial leap.

However, a change in mindset, wherein high-achieving professionals believe they can build and scale their ventures, is the critical force reshaping the country’s startup landscape. With rising ambition, improved access to capital and a burgeoning market, India is primed to produce the next wave of globally competitive companies.

[Edited By Sanghamitra Mandal]