Venture debt firm Trifecta Capital has announced the first close of its fourth and largest venture debt fund. The firm aims to raise Rs. 2,000 crore, including a greenshoe option of Rs. 500 crore.

Trifecta Capital introduced its first venture debt fund in 2015, pioneering this asset class by offering non-dilutive financing solutions to early and growth-stage new-economy businesses.

These companies often struggle to secure credit from traditional financial institutions such as banks and NBFCs. Since its establishment, Trifecta has successfully raised three venture debt funds and deployed investments exceeding Rs. 6,500 crore (approximately $875 million).

The firm reports strong performance across all funds, delivering attractive returns in terms of IRR and DPI.

With Trifecta Venture Debt Fund - IV, the company intends to invest in over 100 businesses, focusing on industries like fintech, electric vehicles, consumer products and services, logistics, new-age manufacturing, B2B services, and core technology, including software and hardware.

Additionally, the fund will explore investment opportunities in emerging sectors such as renewable energy, climate, and sustainability, which are increasingly attracting mainstream capital and are expected to experience substantial growth in the coming years. Trifecta has already backed companies like Hygenco, a key player in green hydrogen, as well as Euler and BatterySmart. The firm is actively assessing other high-growth businesses in these sectors.

Currently, Trifecta is recycling capital from its third venture debt fund, which has reached full deployment. Across its venture debt funds, credit costs have been maintained at below 0.8%, while equity-linked capital gains have surpassed Rs. 700 crore. Notably, no investor has faced capital losses, further strengthening fund performance.