IFC to invest up to $25M in Trifecta Capital’s fourth debt fund
The infusion into Trifecta Venture Debt Fund IV is expected to provide venture debt to select startups at Series A stage and beyond.
International Finance Corporation (IFC) will infuse up to $25 million in Trifecta Capital’s fourth venture-debt fund to back startups in high-impact sectors including the EV ecosystem, AI infrastructure, and agri-tech.
IFC, which is part of the World Bank Group, is a United Nations agency that invests in private sector growth in developing countries.
Trifecta Capital, which has backed companies such as meat and seafood marketplace Captain Fresh and battery swapping operator Battery Smart, will look to provide venture debt to select startup at Series A stage and beyond under Trifecta Venture Debt Fund IV.
The infusion comes on the back of rising demand for venture debt in India’s startup ecosystem to provide companies with working capital and capital expenditure, without any dilution.
“Providing more funding options to innovative startups, including flexible, cost-effective mechanisms like venture debt, is essential for India’s economic growth and job creation,” said Farid Fezoua, IFC Global Director for Disruptive Technologies, Services and Funds.
IFC’s private equity funds strategy focuses on providing growth capital to funds with the highest likelihood of financial and development impact, said the firm.
IFC invests $25 million in Trifecta Venture Debt Fund IV
This investment follows IFC’s infusion of $137 million to help boost India’s electric bus ecosystem.
“Our partnership with IFC enhances our ability to back transformative companies with flexible, founder-friendly capital at critical moments in their growth journey,” said Rahul Khanna, Managing Partner at Trifecta Capital. “It also reinforces our long-term commitment to climate and sustainability-led innovation—areas where venture debt can serve as a catalytic force in scaling impact.”
In January this year, Trifecta Capital made the first close of its fourth venture debt fund, with a proposed size of Rs 2,000 crore. The venture debt firm raised funding from insurance companies, family offices, and corporate treasuries. The amount raised was not disclosed.
Edited by Swetha Kannan