Anuj Srivastava, CEO of Bengaluru-based OnFinance AI, apologized following his public criticism of India-focused early-stage venture firm All In Capital for passing on investment in 2022, recognizing the firm's continued guidance and support despite the initial rejection.
- Pre-seed funding declined by All In Capital in 2022
- Founder misunderstood feedback leading to public criticism
- Apology accepted; firm praised for constructive, ongoing support
What happened
In October 2022, All In Capital, a venture firm focused on pre-seed investments in Indian fintech, SaaS, and deeptech startups, officially declined to invest in OnFinance AI, a fintech company developing financial infrastructure products. Despite the rejection, All In Capital continued to stay engaged by facilitating introductions to other investors and offering ongoing fundraising guidance.
However, in a public post on the social platform X, OnFinance AI founder Anuj Srivastava criticized All In Capital for not investing, which sparked a response from the venture partner Kushal Bhagia. Bhagia shared communications and proof that demonstrated the firm’s efforts to provide constructive feedback and maintain support, leading to wider industry backing for the venture firm’s approach.
Why it matters
This episode highlights the complexities of founder-VC relationships, especially around early-stage investment decisions that can be misinterpreted as outright dismissals. The public nature of the criticism underscores the pressures founders face and the importance of clear communication and professional conduct in startup funding conversations.
The supportive responses from other investors and founders affirm All In Capital’s reputation in the Indian startup ecosystem as a firm that handles funding rejections with transparency and continues to add value after passing on investments. Srivastava’s later apology reflects a recognition of the nuanced role venture firms play beyond capital provision.
What to watch next
OnFinance AI has since progressed beyond its pre-seed stage, and attention will focus on its next fundraising rounds and product development milestones in India’s competitive fintech market. Monitoring how the startup leverages its ongoing industry relationships will be key to its growth trajectory.
Additionally, the incident serves as a reminder for both founders and investors of the value of constructive feedback channels and maintaining professionalism even in disagreement. It may prompt venture firms and startups to establish clearer communication frameworks to avoid similar public conflicts in the future.