Venture debt firm Trifecta Capital has launched its third venture debt fund, targeting a corpus of Rs 1,500 crores for its latest fund.
The fund, with a target corpus of Rs1,000 crores ($133 million) and a green shoe option of Rs 500 crore ($ 67 million), will be the largest in the series of venture debt funds managed by the firm, it said in a statement. It aims to serve the rapidly growing financing opportunities for Indian startups.
Earlier this year, the firm announced the final close of its Venture Debt Fund – II at $140 million, which it started raising in 2019. The first close saw participation from domestic investors including large corporates, insurance companies, marquee family offices, UHNIS, and entrepreneurs.
“The funds are focused on late-stage VCs which are looking either for an IPO or a strategic sale,” Rahul Khanna, Managing Partner of Trifecta Capital had told CNBC-TV18 in August.
The firm has made 140 investments over the last six years. Trifecta Capital’s Venture Debt Funds have invested approximately Rs2,200 crores ($293 million) in over 85 startups.
Trifecta Venture Debt Fund’s portfolio now has 11 Unicorns and more than 15 Soonicorns, with businesses including Big Basket, Pharmeasy, Cars24, Vedantu, Infra. Market, ShareChat, Dailyhunt, UrbanCompany, CarDekho, Blackbuck, Ninjacart, NoBroker, Kreditbee, Dehaat, Turtlemint, Servify, Livspace and BharatPe amongst several others. The portfolio is cumulatively valued at $33 billion.
“We have been market participants for a long time. The pandemic accelerated the growth of these companies. There also has been a global reset about India versus China. There’s a lot of appetite for Indian tech,” Khanna told CNBC-TV18.
The firm aims to deploy its funds from third capital in emerging sectors such as SaaS, D2C, B2B commerce, Fintech, E-commerce Sellers, among others.
“In this new fund, we will continue to select the very best, and further innovate on the right credit products for them, as we are strong believers in the potential of these businesses to scale and contribute to nation-building,” said Nilesh Kothari, Managing Partner, Trifecta Capital.
Buoyed by a flush of liquidity in the market, Trifecta Capital aims to complete the first close in the calendar year 2021. The venture debt firm is also looking to consolidate its position as an innovator and financial partner of choice for the rapidly growing startup ecosystem.
(Edited by : Pradeep Suresh V)