The Trifecta Venture Debt Fund IV, the largest fund yet launched by Trifecta Capital, the pioneer of venture debt funds in India, has a target corpus of INR 2000 crores.
This achievement is being celebrated by Trifecta Capital, which has invested over INR 6000 crores in over 180 businesses through its three previous venture debt funds since 2015. For example, Atomberg, BigBasket, BlueStone, Country Delight, Cars24, Cashfree, Curefit, DailyHunt, GlobalBees, Infra.Market, Livspace, Meesho, PaperBoat, UrbanCompany, Zolve, and Zepto are among the more than 50 startups that have attained unicorn/soonicorn status and are recognized as category leaders.
Venture debt, a companion asset class, is only a decade old, despite the fact that the Indian venture capital industry is over two decades old. Trifecta Capital established India’s inaugural venture debt fund in 2015, thereby establishing the groundwork for this asset class. The fund offers non-dilutive financing solutions to early and growth-stage companies that are typically unable to obtain credit from traditional lenders, such as banks and NBFCs. Investors in this asset class value its predictable quarterly returns, prospective participation, and relatively low-risk profile.
Large family offices, insurance companies, banks, financial institutions, corporate treasuries, endowment funds, and development financial institutions have all provided their support to Trifecta Capital.
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It is intriguing that Trifecta Capital’s venture debt funds have a credit quality that is substantially higher than the benchmark. The total write-off of investments across the Funds has been less than 0.6%. This is in defiance of the funding winters of 2016 and 2022-2024, as well as disruptions caused by COVID-19, demonetization, and the GST rollout. Additionally, the aggregate capital gains of over INR 700 crores in the three venture debt funds result in a substantial positive impact on fund returns and guarantee that no investor experiences a net capital loss, as a result of the upside participation through equity instruments. The firm’s success is attributed to its selective selection of businesses that possess strong moats, favorable demand-supply dynamics, robust unit economics, high-pedigree founders, and robust investor support.
Trifecta Capital is already anticipating the future as it commemorates its tenth anniversary in 2025. The Firm has expanded into the growth equity asset class with Trifecta Leaders Fund I, which closed in 2023 with a corpus of INR 1,560 Crores, leveraging its well-established venture debt strategy. Trifecta Leaders Fund I, which was previously the Managing Director at Goldman Sachs Principal Investments, is currently led by Lavanya Ashok. The fund has made investments in a variety of companies, including Atomberg, Meesho, Country Delight, Fibe (formerly EarlySalary), Auxilo, Livspace, and ixigo. ixigo was the first investee company in the fund’s portfolio to go public, and it achieved a stellar IPO performance.
Nilesh Kothari, Managing Partner, Trifecta Capital, said: “We are grateful to all our investors for the support over the last nine years and look forward to delivering strong returns. We also want to recognize the efforts of our investment teams across Mumbai, Bengaluru, and NCR who have focussed on delivering best-in-class returns while prioritising capital preservation, a critical element of this asset class,”
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