Team Startupcity

• IFC to invest up to $25 Million in Trifecta Capital’s fourth venture-debt fund targeting EV, AI, and agri-tech startups
• Venture debt provides non-dilutive capital for Series A+ startups, supporting growth without equity surrender
• IFC-Trifecta partnership strengthens funding for climate, sustainability, and innovation-driven Indian startups

The World Bank Group's International Finance Corporation (IFC) is planning to invest up to $25 million in Trifecta Capital's fourth venture-debt fund, targeting startups in high-impact industries like the EV ecosystem, AI infrastructure, and agri-tech. The development reflects IFC's role as a driver of private sector expansion in emerging economies and resonates with India's growing need for venture debt as an adaptable, non-dilutive source of capital for early-stage and growth-stage businesses.

Trifecta Capital, which has invested in companies such as meat and seafood marketplace Captain Fresh and battery swapping firm Battery Smart before, will make the venture debt available through its Trifecta Venture Debt Fund IV with a focus mainly on startups at the Series A level and above. Venture debt enables firms to monetize working capital or finance capex without the surrender of equity, giving founders more flexibility at key growth stages.

"Increasing the amount of funding alternatives for innovative startups, such as flexible, affordable mechanisms like venture debt, is crucial for India's economic development and job generation", stated Farid Fezoua, IFC Global Director for Disruptive Technologies, Services, and Funds. IFC's private equity fund strategy focuses on investing growth capital in funds with high prospects of both financial returns and developmental outcomes.

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This new investment comes on the heels of IFC's $137 million investment earlier to finance India's electric bus ecosystem. Rahul Khanna, Managing Partner, Trifecta Capital, emphasized that the IFC partnership deepens the firm's capacity to support change-making companies with founder-centric capital at inflection points in their growth trajectories. He also mentioned that venture debt has a catalytic impact in scaling influence, especially in sectors driven by climate and sustainability-driven innovation.

Trifecta Capital had completed the first close of its fourth venture debt fund in January 2025, with a mooted corpus of ₹2,000 crore, raising capital from insurance firms, family offices, and corporate treasuries. Although the amount raised through the first close was not announced, the investment by IFC will further increase the ability of Trifecta to deliver growth capital to India's high-growth startups, strengthening its long-term focus on investing in innovative sectors that contribute to economic and environmental sustainability.