Trifecta Capital Announces First Close of INR 2,000 Cr Fourth Venture Debt Fund With the fourth fund, Trifecta Capital aims to invest in over 100 companies across fintech, EVs, logistics, and core tech, while exploring emerging sectors like renewable energy, climate, and sustainability for future growth.
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Venture debt firm Trifecta Capital has announced the first close of its fourth and largest venture debt fund to date. The firm aims to raise INR 2,000 crore, including a greenshoe option of INR 500 crore, marking a significant milestone in its journey.
Trifecta Capital, established in 2015, pioneered venture debt in India by offering non-dilutive financing solutions for early and growth-stage companies that often face challenges accessing credit from traditional financial institutions such as banks and NBFCs. Since its inception, Trifecta Capital has successfully raised three venture debt funds and invested over INR 6,500 crore (approximately USD 875 million) across these funds, generating attractive returns in terms of both IRR and DPI.
Rahul Khanna, Managing Partner at Trifecta Capital, said, "We are incredibly grateful to our investors, both new and old, for their steadfast support and trust in Trifecta Capital. Their commitment to our vision has been instrumental in our success, and we are excited to continue this journey with them as we embark on this new chapter with Venture Debt Fund-IV."
The fourth fund is set to invest in over 100 companies across sectors such as fintech, electric vehicles, consumer products and services, logistics, new age manufacturing, B2B services, and core tech, including software and hardware. Additionally, Trifecta Capital plans to explore emerging sectors like renewable energy, climate, and sustainability, which are poised for significant growth in the coming decade. Notable investments already made in these sunrise sectors include Hygenco, Euler, and Batterysmart.
Trifecta Capital's third venture debt fund has already reached full drawdown, and the firm is actively recycling capital. With total credit costs managed at less than 0.8%, the venture debt firm boasts zero capital loss to any investor. Aggregate capital gains from equity options across the funds exceed INR 700 crore, positively impacting fund returns.
"Investors have appreciated Trifecta Capital's venture debt funds for their ability to protect capital through strong underwriting and innovative structuring, regular income distributions, consistency of returns, equity upside, and tax efficiency. The funds have been a key part of their fixed-income income allocations and continue to be attractive relative to other private credit opportunities," added Nilesh Kothari, Managing Partner, Trifecta Capital.
To date, Trifecta Capital claims to have raised INR 5,300 crore (USD 715 million) across four Venture Debt Funds and one Growth Equity Fund. The firm has invested INR 7,800 crore (USD 1.06 billion), including recycled capital, in over 200 businesses. Its diverse portfolio, valued at USD 67 billion, features marquee names like Atomberg, BigBasket, BlueStone, Country Delight, Cars24, Cashfree, Rebel Foods, Shadowfax, CarDekho, Curefit, DailyHunt, Infra.Market, Livspace, Meesho, PaperBoat, EatFit, UrbanCompany, Zolve, and Zepto.
