Trifecta Marks First Close Of INR 2,000 Cr Venture Debt Fund IV

Trifecta Marks First Close Of INR 2,000 Cr Venture Debt Fund IV

SUMMARY

The venture debt firm expects to announce the final close of the fund by the end of this year

The Trifecta Venture Debt Fund IV will invest in more than 100 startups, with an average ticket size of INR 25 Cr to INR 30 Cr

The company is targeting startups across multiple sectors, including fintech, EV, consumer services, logistics, B2B services, renewable energy and sustainability

Investment firm Trifecta Capital has announced the first close of its INR 2,000 Cr fourth venture debt fund. Without disclosing the exact amount, the investment firm said that it has so far received commitments to the tune of half of the fund.

The venture debt firm expects to announce the final close of the fund by the end of this year. 

The Trifecta Venture Debt Fund IV also has a greenshoe option of INR 500 Cr. It will invest in more than 100 startups, with an average ticket size of INR 25 Cr to INR 30 Cr. 

“In the third fund, the average ticket size per investment was somewhere between INR 23 Cr  to INR 35 Cr, so, we would like to stay in the same range in the fourth fund as well,” Trifecta Capital cofounder and managing partner Rahul Khanna told Inc42. 

The company is targeting startups across multiple sectors, including fintech, EV, consumer products and services, logistics, new-age manufacturing, B2B services, renewable energy, and sustainability. 

“No one sector would be more than 15% of our allocation of the fund,” said Khanna, adding that the firm will avoid investments in sectors that involve regulatory risk. 

Founded in 2014 by Khanna and Nilesh Kothari, Trifecta offers non-dilutive financing solutions for early and growth-stage companies. The firm claims to have so far invested INR 6,500 Cr in 180 startups via its three funds since inception. 

“In the first fund, it was vertical commerce, while in fund two, we had a lot of activity around edtech. In the third fund, we saw sectors like agritech, SaaS and fintech take prominence. So, the sector focus is primarily dependent on which ecosystems are maturing at different points in time,” Khanna said. 

Speaking about the fourth fund, he added, “INR 2,000 Cr fund means we have an INR 5,000 Cr investment corpus, as historically we have recycled our capital up to two and a half times.”

Trifecta counts names like ixigo, BlackBuck and MobiKwik, which made their public market debuts last year, in its portfolio. It further claims to have over 50 unicorns and soonicorns in its portfolio, including BigBasket, BlueStone, Country Delight, Cars24, Rebel Foods, Shadowfax, CarDekho, CureFit, Meesho, PaperBoat, Urban Company, Zepto, among others. 

Trifecta announced the launch of its fourth fund in August 2024. The venture debt firm claims to have garnered support from insurance companies, leading family offices and corporate treasuries for its latest fund. 

The Delhi NCR-based firm made the final close of its third venture debt fund, Trifecta Venture Debt Fund III, at INR 1,777 Cr in September 2023. The fund was oversubscribed, surpassing the initial target of INR 1,500 Cr. 

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