New Delhi, Nov 17 (PTI) Trifecta Capital on Wednesday said it has achieved the first close of its third venture debt fund, Trifecta Venture Debt Fund-III, with investor commitments of Rs 750 crore within two months of the launch of the Fund.
The Fund, which has a target corpus of Rs 1,000 crore and a green shoe option of Rs 500 crore, is the largest in the series of venture debt funds managed by the firm.
Strong interest from domestic and global investors is being seen for the Fund, as Trifecta Capital has demonstrated a robust track record across both its prior venture debt funds, according to a statement.
The Fund aims to serve the fast-growing demand for growth and acquisition financing in Indian start-ups, it added.
“The rapid first close achieved by Trifecta Venture Debt Fund-III, primarily through remote fundraising, is testimony to the deep confidence that investors have placed in the Trifecta Capital team based on its robust investment track record across both its prior funds,” it said.
Trifecta Capital continues to witness strong interest from both new as well as existing investors in its prior funds which include banks, insurance companies, development financial institutions, corporates, endowments, and some of India’s largest family offices, it added.
Focus sectors where the firm plans to enhance participation include emerging sectors with high growth prospects such as SaaS (software-as-a-service), D2C (direct-to-consumer), B2B commerce, fintech and e-commerce sellers, the statement said.
Trifecta Capital aims to complete the final close for this fund in the first quarter of 2022, it said adding that Trifecta Capital has begun active deployment from this vehicle, having already identified a healthy pipeline of credit opportunities.
Earlier this year, the firm had announced the final close and oversubscription of Trifecta Venture Debt Fund-II at Rs 1,025 crore as well as the first close of its late-stage equity offering — the Rs 1,500 crore Trifecta Leaders Fund-I.
Trifecta Capital has committed over Rs 2,700 crore of credit in over 85 start-ups across its prior debt funds, and an additional Rs 750 crore of equity in seven start-ups from its equity fund.
Its portfolio now has 15 unicorns (companies with valuation of over USD 1 billion) and more than 12 ‘soonicorns’, with businesses including Big Basket, Pharmeasy, Cars24, Infra.Market, ShareChat, Dailyhunt, Urban Company, Vedantu and The Good Glamm Group.
The businesses also include CarDekho, Blackbuck, Ninjacart, NoBroker, Dehaat, Turtlemint, Servify, Livspace, CureFit, Meesho, Ixigo, Mobikwik, Builder.ai and BharatPe.
The Trifecta Capital portfolio has cumulatively raised USD 9.5 billion of equity and is cumulatively valued at USD 40 billion.
Trifecta Capital will “continue its focus on prudently selecting market leaders and early category creators for the planned investments from Trifecta Venture Debt Fund-III”, the statement said.
It will offer customised solutions woven around growth financing, with creative mechanisms of risk sharing, working capital financing for inventory and receivables, bespoke capital structured to fund acquisitions, as well as blended financing structures along with participation from banks and NBFCs, it added.
The firm additionally aims to utilise the capital pool to continue backing portfolio companies farther into their growth journey, through multiple follow-on investments and the ability to underwrite larger investments, the statement said.
“We are thankful to our investors for their commitments to Trifecta Venture Debt Fund-III.
“It is rare to raise two Funds in the same year, and we have been fortunate to do it thanks to our investors, our team, our portfolio partners, and our friends from the venture capital industry. We will endeavor to deliver consistent and healthy returns from this Fund as well,” Trifecta Capital Managing Partner Rahul Khanna said. PTI SR AA HRS hrs
