Trifecta Capital, a leading venture debt firm, has announced the initial closure of its fourth and most extensive venture debt fund yet. The firm aims to gather Rs 2,000 crore, including a Rs 500 crore greenshoe option, for this fund.
Back in 2015, Trifecta Capital introduced its inaugural venture debt fund, pioneering the asset class by delivering non-dilutive financial solutions to early and growth-stage new-economy businesses lacking access to conventional credit from banks and NBFCs. Since then, Trifecta Capital has successfully launched three venture debt funds, investing over INR 6,500 crore (US$ 875 million) so far. They assert having achieved impressive returns both in terms of IRR and DPI across these funds.
With Trifecta Venture Debt Fund – IV, the firm intends to invest in more than 100 companies, with a focus on industries like Fintech, Electric Vehicles, Consumer Products and Services, Logistics, New Age Manufacturing, B2B Services, and Core Tech, comprising Software and Hardware.
As per Trifecta, the fund will proactively explore investment opportunities in emerging industries such as renewable energy, climate, and sustainability, which are beginning to draw mainstream investment and are set for marked growth in the next decade. The firm has already invested in companies like Hygenco, Euler, and BatterySmart within these rapidly expanding sectors and is assessing other potential investments.
Currently, Trifecta is engaged in capital recycling from Trifecta Venture Debt Fund III after its complete drawdown. Over its venture debt funds, total credit costs have been maintained below 0.8%. In addition, capital gains from equity options across all funds exceed Rs 700 crore, ensuring no capital loss to any investor and notably enhancing fund returns.
To date, Trifecta Capital has gathered Rs 5,300 crore ($715 million) spanning four Venture Debt Funds and one Growth Equity Fund. It has invested Rs 7,800 crore ($1.06 billion), including recycled capital, in over 200 enterprises featuring more than 30 unicorns, with a portfolio worth $67 billion.
Trifecta’s distinguished portfolio companies include Atomberg, BigBasket, BlueStone, Country Delight, Cars24, Cashfree, Rebel Foods, Shadowfax, CarDekho, Curefit, DailyHunt, Infra.Market, Livspace, Meesho, PaperBoat, EatFit, UrbanCompany, Zolve, and Zepto.