Trifecta Capital Closes Second Fund at Rs 1,025 crore; To Launch Third Fund in Q3 2021

Trifecta Capital Closes Second Fund at Rs 1,025 crore; To Launch Third Fund in Q3 2021

Venture debt fund, Trifecta Capital announced the final close of its second fund Trifecta Venture Debt Fund II at a corpus of Rs 1,025 crore. Launched in March 2019, the fund’s initial target was of Rs 1,000 crore with a green shoe option of Rs 250 crore. The fund also had a provision to recycle capital and will have an investible corpus of up to ₹2,560 crore. Through its second fund, the firm has invested Rs 900 crore across 38 startups.

Rahul Khanna, Managing Partner, Trifecta Capital, 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.”

Founded in 2014, Trifecta Capital is India’s first venture debt fund. Founded by Nilesh Kothari and Rahul Khanna, the firm makes seed and early stage funding in consumer product, consumer service, e-commerce, enterprise and healthcare startups. Its first debt fund worth Rs 500 crore was launched in 2014.

Trifecta has so far invested in 72 companies including market leaders such as BharatPe, BigBasket, Cars24, dailyhunt, Furlenco, Practo, Urban Company among others. One of the firm’s portfolio companies Infra.Market recently gained unicorn status. Eight other startups from Trifecta’s potfolio have joined the unicorn club.

Rahul added, “Our journey over the last five years has really been around identifying these early category leaders and providing to them a range of financing solutions. We have built a whole set of financial solutions on credit into these companies.”

Trifecta Capital is planning to launch its third venture debt fund in 2021, which will be worth rs 1200-1500 crore.