Trifecta Capital announces the first close of Trifecta Venture Debt Fund–III at Rs 750 Cr

Trifecta Capital on Wednesday announced that it has achieved the first close of its third venture debt fund, Trifecta Venture Debt Fund – III, having secured investor commitments of Rs. 750 crores within two months of the launch of the Fund.

The Fund, with a target corpus of Rs. 1,000 crores ($133 million) and a green shoe option of Rs. 500 crores ($67 million) - is the largest in the series of venture debt funds managed by the firm.

The Indian startup ecosystem has seen 36 new entrants to the Unicorn club in 2021 itself and has attracted $35 billion in equity financing in 2021 till date. Trifecta Capital aims to serve the rapidly growing financing opportunities for Indian startups, with a focus on investing in B2B marketplaces, D2C brands, and SaaS startups.

Trifecta Capital continues to witness strong interest from both new investors as well as investors in its prior funds which include banks, insurance companies, Development Financial Institutions, corporates, endowments, and some of India’s largest Family Offices.

Earlier this year, the firm had announced the final close and oversubscription of Trifecta Venture Debt Fund – II at Rs 1025 crores, as well as the first close of its late-stage equity offering, the Rs. 1,500 crores Trifecta Leaders Fund – I. With the first close of Trifecta Venture Debt Fund – III, the firm is uniquely positioned among providers of venture debt with three active debt funds and one active equity fund, along with high quality advisory services to support the diverse needs of startups across their lifecycle.

Rahul Khanna, Managing Partner, said, “We are thankful to our investors for their commitments to Trifecta Venture Debt Fund – III. It is rare to raise two Funds in the same year, and we have been fortunate to do it thanks to our investors, our team, our portfolio partners, and our friends from the venture capital industry. We will endeavour to deliver consistent and healthy returns from this Fund as well.”

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Trifecta Capital announces launch of Debt Fund — III with a target corpus of Rs 1,000 Cr

The firm additionally aims to utilise the capital pool to continue backing portfolio companies farther into their growth journey, through multiple follow-on investments and the ability to underwrite larger investments.

According to an official statement, focus sectors where the firm plans to enhance participation include emerging sectors with high growth prospects such as SaaS (Software as a Service), D2C (Direct-to-consumer), B2B commerce, fintech, ecommerce sellers, etc.

Trifecta Capital aims to complete the final close for this fund in Q1 2022.

Nilesh Kothari, Managing Partner, added, “Equipped with Venture Debt Fund – III, a customised technology platform offering financial advisory solutions and a late-stage equity fund, Trifecta Capital aims to consolidate its position as an innovator and financial partner of choice for the rapidly growing startup ecosystem. Over the next two years, we will continue to introduce more interesting products and services to solve for large gaps within this ecosystem.”