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Trifecta Capital has announced its second venture debt fund, Trifecta Venture Debt Fund.

The fund was launched in March 2019 and has been oversubscribed in its final closing. The fund, with an intial target of Rs 1,000 crore ($137 million), including a green shoe option of Rs 250 crore, received investor commitments of Rs 1,025 crore ($ 140 million).

Rahul Khanna, Managing Partner said, “Successfully closing Fund II during these challenging times is evidence of the performance of our funds and the maturity of the asset class that we pioneered in 2014. Besides consistently beating the quarterly hurdle on returns for over five years across both funds, we have returned a significant portion of our first fund to investors and are building a strong foundation for the future. We are grateful to our investors for their continued support.”

Trifecta Venture Debt Fund II has already invested Rs 900 crore across 38 companies and, with a provision to recycle capital, will have an investible corpus of up to Rs 2,560 crore.  

Trifecta Capital had launched  the country’s first Venture Debt Fund  in 2014 with commitments of Rs 500 crore. This fund, now in its sixth year, has already returned over three quarters of its capital to its investors, and is likely to return 100 percent of the capital by June 2021.

Across the two Funds, Trifecta Capital has invested approximately Rs 2,000 crore in 72 early growth and growth-stage start-ups. 

Trifecta Capitals’ funds are predominantly backed by institutional investors, including banks, insurance companies, development Institutions, public sector entities, corporates and endowments , from India and offshore, as well as some of India’s largest family offices.  

Its portfolio companies include Big Basket, Pharmeasy, Cars24, Vedantu, Infra.Market, ShareChat, Dailyhunt, UrbanCompany, CureFit, CarDekho, Blackbuck, Ninjacart, NoBroker, Kreditbee, Dehaat, Turtlemint, Livspace, and BharatPe amongst several others.

‘Founders come first’

The Trifecta Capital portfolio has cumulatively raised $8.1 billion of equity, and is cumulatively valued at 20 billion.

“For Trifecta Capital, founders come first. We are motivated by the success of our portfolio companies and continue to innovate with financing structures around different use cases, be it working capital, inventory, growth or acquisition financing. Our solution-oriented approach to financing and our deep commitment to helping grow our portfolio companies has been a key differentiator for Trifecta Capital,” said Nilesh Kothari, Managing Partner.

Rajeev Ahuja, Executive Director, RBL Bank said, “We have had a relationship with Trifecta Capital since its founding days and it has helped us understand the dynamic startup environment in India. Trifecta Capital, and the involvement of investors like RBL Bank, broadens the availability of capital, both venture and senior debt. Together, we bring an array of modern treasury, working capital and payment services that can help startups grow their businesses and also address a diverse set of financial needs.”

Trifecta Capital will launching its third venture debt fund in Q3 21. The size of this fund is likely to be in the range of Rs 1,200-1,500 crore.