Trifecta Capital, a venture debt firm based in Delhi NCR, has successfully closed its third venture debt fund, Trifecta Venture Debt Fund III, at INR 1,777 Crores. This closing exceeded the initial target of INR 1,500 Crores and was oversubscribed. The first close of the fund occurred in November 2021.
One notable feature of this fund is its provision for capital recycling, which means that it can reinvest capital as it is repaid, resulting in an investible corpus of up to INR 4,440 Crores. Additionally, Trifecta Capital reported having a dry powder of INR 3,000 Crores.
Since the fund’s first close in November 2021, Trifecta Capital has already invested INR 1,500 Crores in over 50 startups. Some notable startups that have received funding from this third fund include Zepto, The Good Glamm Group, Kissht, Rebel Foods, and Cashfree Payments.
Rahul Khanna, co-founder and managing partner of Trifecta Capital, mentioned that the fund has near-term investment opportunities worth more than INR 800 Crores across a curated group of startups. They anticipate crossing INR 6,000 Crores in cumulative debt capital invested during the current financial year. The firm also stated that its portfolio startups have achieved a median annual revenue growth rate of 60%.
The fund’s strategy includes:
- Prioritizing follow-on investments in well-capitalized companies and category leaders within their portfolio.
- Fostering long-term relationships.
- Prudently managing risks at a portfolio level.
Nilesh Kothari, co-founder and managing partner at Trifecta Capital, highlighted the firm’s role in establishing India’s venture debt asset class. Before Trifecta, there were no venture debt funds in the country, and the firm has been actively involved in educating and engaging with founders and the venture capital ecosystem.
