Investor Profile: N+1 Capital — Thesis, Cheque Size & How to Apply

For founders who want growth capital without selling equity, N+1 Capital funding is built for exactly that trade-off. The Mumbai-based firm lends to startups and collects a fixed percentage of monthly revenue instead of taking a board seat or a slice of the cap table. Repayment flexes with how the business actually performs: strong months pay more, lean months pay less, and the total payout is capped by mutual agreement.

Founded in 2020 by Rahul Chowdhury and Ashish Singla, N+1 Capital set out to pioneer revenue-based financing in India at a time when founders really had two options: sell shares to VCs or raise venture debt with equity kickers. Chowdhury, an active angel investor, and Singla, who previously headed Max Ventures, the investment arm of the Max group, built the firm for the large middle of the market — growing companies that VCs pass over because they are not obvious rocketships.

Thesis and sweet spot

N+1 Capital backs growth-stage startups across sectors that have predictable revenues but do not want dilution. The firm looks for companies that are at least a year old, with net revenue of ₹50 lakh and average gross margins above 30%. Investments are not collateralised, there are no equity sale requirements, and no personal guarantee is asked of founders. A tech-driven risk-scoring model does the underwriting, which keeps diligence light.

Cheque size and fund

Ticket sizes run from ₹1 crore to ₹15 crore. In early 2021 the firm was reported to be raising a $100 million (about ₹730 crore) debut fund after receiving SEBI approval, with family offices in the UK, the US and India as limited partners and a targeted 20% internal rate of return for backers. A final closed corpus has not been publicly confirmed, so the fund size is best treated as not publicly disclosed beyond the reported plans. Limited partners are paid quarterly from the revenue share collected.

Notable portfolio

N+1 Capital’s first investment in India was a ₹5 crore facility for Clensta, an IIT Delhi-backed personal care and home care startup, in May 2021. Clensta, which had recently tied up with pharma brand Cipla for its waterless personal-care products, used the capital to scale its homecare range and push into direct-to-consumer channels. The firm says it aims to back more than 100 entrepreneurs over its lifecycle.

Partners

The firm is run by managing partner Rahul Chowdhury and co-founder Ashish Singla. Chowdhury is an active angel investor with prior entrepreneurial experience; Singla earlier headed Max Ventures. The firm has partnered with investment platform LetsVenture as its venture partner for sourcing and fundraising.

Programs, credits and perks

N+1 Capital runs no public accelerator, credits programme or perk bundle. Its pitch to founders is the structure itself: non-dilutive capital, no collateral, and a repayment schedule that moves with revenue rather than a fixed EMI clock.

How to apply for funding

N+1 Capital has no public application form that could be verified. Founders typically reach the firm through its venture partner LetsVenture or a direct introduction. Before reaching out, make sure the business clears the firm’s stated bar: at least a year of operations, ₹50 lakh in net revenue and gross margins above 30%.