All in Capital targets closing its second fund in next three months

With an estimated corpus of $25 million, the VC firm plans to invest in 45-50 startups over the next three years in sectors like consumer-tech, artificial intelligence, and deeptech

Venture capital firm All in Capital is looking to close its second fund in the next two to three months, according to founder and partner Kushal Bhagia. The fund, which plans to raise a corpus of $25 million, had its first close in September last year.

 

From this fund, the firm plans to invest in 45-50 startups over the next three years and has already backed 15 companies so far. The average ticket size for each company is around $400,000. A few investments include consumer companies like Taakart, Krvvy, MomsMade, and artificial intelligence companies like MedMitraAI.

 

The firm will invest in sectors such as consumer-tech and consumer companies, artificial intelligence (AI), and deep-tech companies. "It will be around 50 per cent of consumer companies, 30 per cent will be AI companies from India, and about 20 per cent will be deep tech companies," Bhagia said.

 

Regarding investors, Bhagia said: "We are mainly backed by family offices from India and abroad. Some of the later-stage funds have also backed us as LPs (limited partners). There are tech HNIs (high networth individuals) who have built tech companies or made money as operators at tech companies, who have also backed us. These are the three main classes of LPs we have."

 

The size of the firm's second fund is larger than its first fund, which had a corpus of $11 million. Interestingly, the firm invested in 51 companies from its maiden fund; however, the average ticket size, at $150,000, was comparatively smaller than its ongoing fund. The first fund is complete, and the firm finished deploying from that fund in August last year, Bhagia added.

 

Speaking on some of the standout investments from the first fund, Bhagia said, "One is NewMe, which is a fast fashion platform for women in India. We came in there as the first check in July 2022, and Fireside Ventures and Accel also came in. They have 14 stores and are at an annual rate of more than Rs 200 crores. Another is PierSight, which is building satellites that track ships in real-time. Recently, the government of India gave them a tender to build satellites for them." He added that other companies in the firm's portfolio, such as Salty, a fashion accessories brand, and an AI company, Broccoli AI, are also making significant inroads.

 

"From fund one, we have had one exit. The internal rate of return (IRR) was around 60-70 per cent, and that was one of the standout investments as part of that fund. We are seeing more companies that will potentially start giving us exits in the next couple of years. It's too soon to start harvesting our stakes in this financial year, but we will see two to three exits every year from FY27. We are gunning for a 40 per cent IRR on the fund," Bhagia said. The firm is yet to formally announce its first exit.