Investment in Trifecta Capital’s Venture Debt Fund

The International Finance Corporation, which serves as the private sector branch of the World Bank Group, is planning to invest as much as $25 million in Trifecta Capital’s fourth venture debt fund. This fund aims to provide debt financing to startups at the Series A phase and beyond. The focus areas include electric vehicles, financial services, climate technology, artificial intelligence infrastructure, manufacturing technology, and agritech. Additionally, it seeks to diversify into the consumer, education, and healthcare sectors.

According to the IFC, this initiative aligns with its strategy to attract private investments, foster digital innovation, and encourage private sector growth that generates employment. The IFC aims to increase its annual commitments in India to $10 billion by 2030, with an enhanced focus on engaging with state-level initiatives.

Trifecta Capital has introduced its fourth fund, aiming to raise a total of Rs 2,000 crore, which includes a greenshoe option of Rs 500 crore. Established in 2015 by co-founders Rahul Khanna and Nilesh Kothari, Trifecta Capital has successfully gathered Rs 5,400 crore through four venture debt funds and one growth equity fund. Furthermore, it has allocated approximately Rs 8,700 crore, which includes recycled funds, to more than 220 companies. The firm has invested in over 30 unicorns, such as Meesho, Zepto, and Urban Company.

Farid Fezoua, whom IFC appointed as the global director for disruptive technologies, services, and funds, stated that enhancing funding options for innovative startups, which includes flexible and cost-effective solutions like venture debt, is crucial for driving India’s economic advancement and creating new jobs.