Trifecta Capital raises 3rd venture debt fund

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₹1,777 crore (around $213 million), Rahul Khanna, co-founder and managing partner, Trifecta, said The third fund was oversubscribed, surpassing its initial target of ₹1,500 crore. Investors include large global financial institutions, domestic conglomerates, banks, insurers, development financial institutions, public sector entities, and family offices, he added. The firm has now doubled its count of offshore investors, both individuals and institutions, compared to the Trifecta Venture Debt Fund-II.

Around 85% of the capital was raised from domestic investors while the remaining portion sourced from global investors, mainly from the Indo-Japan corridor, said Khanna. Launched in 2021, the third fund has already allocated ₹1,500 crore ($180 million) across 51 companies. With a capital recycling provision, it will have an investable corpus of up to ₹4,440 crore, or $535 million.

The venture debt funds were established in 2015 by Khanna and Nilesh Kothari. Trifecta Capital has raised nearly ₹5,000 crore across its three venture debt funds and a growth equity fund. The third fund has so far invested in The Good Glamm Group, Zepto, Rebel Foods, Infra.Market, Udaan, and Globalbees among others.

It is looking to raise its fourth fund in the first half of 2024, said Khanna. According to him, the firm will also look to raise its second growth equity fund next year. Last year, it had raised ₹1,500 crore at the final close of its maiden equity fund, Trifecta Leaders Fund-I, to invest in growth-stage startups.