Trifecta Capital, a venture debt firm has announced the first close of its fourth fund – Trifecta Venture Debt Fund IV, its largest venture debt fund to date. The firm plans to raise ₹2,000 crore, including a greenshoe option of ₹500 crore. Trifecta Capital launched Trifecta Venture Debt Fund IV in August 2024.
Through the Trifecta Venture Debt Fund – IV, the firm plans to invest in more than 100 companies, with an average ticket size of ₹25 crore to ₹30 crore, spanning across diverse sectors like fintech, electric vehicles, consumer products, logistics, new age manufacturing, B2B services, and core tech, including software and hardware.
Additionally, Trifecta is looking to capitalize on emerging sectors such as renewable energy, climate, and sustainability, which are rapidly gaining attention from investors and are expected to see significant growth in the next decade.
Founded in 2015, Trifecta Capital have surpassed ₹6000 crores in investments across more than 180 startups through the three previous venture debt funds.
Trifecta Capital has so far raised three venture debt funds:
- Trifecta Venture Debt Fund I of ₹500 crores
- Trifecta Venture Debt Fund II of ₹1,024 crores
- Trifecta Venture Debt Fund III of ₹1,777 crores
The firm has expanded into the growth equity asset class with Trifecta Leaders Fund I, which closed in 2023 with a corpus of ₹1,560 crores. Led by Lavanya Ashok, formerly Managing Director at Goldman Sachs Principal Investments, Trifecta Leaders Fund I has invested in companies like Atomberg, Meesho, Country Delight, Fibe (formerly EarlySalary), Auxilo, Livspace, and ixigo.
Over 50 startups have achieved unicorn/soonicorn status and are recognised as category leaders including Atomberg, BigBasket, BlueStone, Country Delight, Cars24, Cashfree, Curefit, DailyHunt, GlobalBees, Infra.Market, Livspace, Meesho, PaperBoat, UrbanCompany, Zolve and Zepto.
Having completed the investment phase of Trifecta Venture Debt Fund I and Trifecta Venture Debt Fund II, the firm has returned a significant portion of capital and generated consistent returns for nine years. Trifecta Capital is also actively recycling capital from its Venture Debt Fund III after a full drawdown.
Across its venture debt funds, total credit costs have been managed at less than 0.8%. Furthermore, the aggregate capital gains from equity options across the funds exceed ₹700 crore, resulting in zero capital loss to any investor and providing a significant positive impact on fund returns.
