Venture Debt Investor Trifecta Capital Secures INR 1,500 Crore for Preliminary Equity Fund
Trifecta Capital, a venture debt investor, has secured INR 1,500 crore ($200 million) for its first ever equity fund, The Trifecta Leaders Fund – I, and plans to raise a further INR 375 crore through a green shoe option.
The fund, which was launched in May 2021 and had its first close in July, will invest in late-stage Indian tech startups that are preparing to go public as well as those looking to scale up and take advantage of the overall tech momentum.
While foreign investors are expected to account for 15 percent to 20 percent of the fund's assets, Trifecta has also received commitments from a number of insurers, asset management firms, and large family offices in India.
Trifecta has so far invested INR 730 crore in unicorns such as Dailyhunt, Cars24, Pristyn Care, ixigo, Good Glamm Group, Pharmeasy, and Meesho, deploying half of the fund's corpus. ixigo, a travel technology company, and Pharmeasy, a healthtech company, are both preparing to go public.
“We have built a highly diversified portfolio and the common trend across all of these is that most of these companies are category leaders. All of them have strong underlying long-term growth prospects,” Trifecta Capital managing partner Rahul Khanna was quoted as saying.
Trifecta Capital, founded in 2014 by Rahul Khanna and Nilesh Kothari, provides customised financing solutions for companies in a variety of industries, including B2B, consumer services, consumer brands, eCommerce, mobility, edtech, agritech, fintech, and healthcare.
The fund, which has been around for seven years, invests in growth and late-stage tech startups that have previously raised institutional capital.
Trifecta's portfolio, according to Khanna, has demonstrated solid unit economics over the last year and is currently well-capitalized to scale up and grow. These companies have over INR 17,000 Cr in cash on their balance sheets, but Khanna believes that by 2022, valuations will have corrected, something that other investors expect as well.
He believes that investors will be able to make new investments in 2022 as some of the valuations will likely correct. “Companies that do need capital will raise and hopefully valuations can be more attractive,” added he.
Trifecta is one of India's most active venture debt firms, in addition to its current equity focus. The Mumbai-based investor announced the launch of the 'Trifecta Venture Debt Fund – III' in September, with a corpus of INR 1,000 crore ($133 million) and a greenshoe option of INR 500 crore ($67 million).
Last year, Khanna told Inc42 that its second fund, which had a corpus of INR 1,225 crore, had already deployed over INR 1,200 crore in debt investments.
Trifecta has invested approximately INR 2,200 Cr ($293 Mn) in more than 85 startups across 140 transactions so far. BigBasket, Vedantu, Pharmeasy, Cars24, Infra.Market, Dailyhunt, ShareChat, UrbanCompany, Blackbuck, CarDekho, and BharatPe are among the 11 unicorns in its portfolio.
InnoVen Capital, which recently invested in BharatPe and Pepperfry, is one of India's most active venture debt investors. Alteria Capital closed its fund II last year for $177 million, with a focus on late-stage companies.
The fund, which was launched in May 2021 and had its first close in July, will invest in late-stage Indian tech startups that are preparing to go public as well as those looking to scale up and take advantage of the overall tech momentum.
While foreign investors are expected to account for 15 percent to 20 percent of the fund's assets, Trifecta has also received commitments from a number of insurers, asset management firms, and large family offices in India.
Trifecta has so far invested INR 730 crore in unicorns such as Dailyhunt, Cars24, Pristyn Care, ixigo, Good Glamm Group, Pharmeasy, and Meesho, deploying half of the fund's corpus. ixigo, a travel technology company, and Pharmeasy, a healthtech company, are both preparing to go public.
“We have built a highly diversified portfolio and the common trend across all of these is that most of these companies are category leaders. All of them have strong underlying long-term growth prospects,” Trifecta Capital managing partner Rahul Khanna was quoted as saying.
Trifecta Capital, founded in 2014 by Rahul Khanna and Nilesh Kothari, provides customised financing solutions for companies in a variety of industries, including B2B, consumer services, consumer brands, eCommerce, mobility, edtech, agritech, fintech, and healthcare.
The fund, which has been around for seven years, invests in growth and late-stage tech startups that have previously raised institutional capital.
Trifecta's portfolio, according to Khanna, has demonstrated solid unit economics over the last year and is currently well-capitalized to scale up and grow. These companies have over INR 17,000 Cr in cash on their balance sheets, but Khanna believes that by 2022, valuations will have corrected, something that other investors expect as well.
He believes that investors will be able to make new investments in 2022 as some of the valuations will likely correct. “Companies that do need capital will raise and hopefully valuations can be more attractive,” added he.
Trifecta is one of India's most active venture debt firms, in addition to its current equity focus. The Mumbai-based investor announced the launch of the 'Trifecta Venture Debt Fund – III' in September, with a corpus of INR 1,000 crore ($133 million) and a greenshoe option of INR 500 crore ($67 million).
Last year, Khanna told Inc42 that its second fund, which had a corpus of INR 1,225 crore, had already deployed over INR 1,200 crore in debt investments.
Trifecta has invested approximately INR 2,200 Cr ($293 Mn) in more than 85 startups across 140 transactions so far. BigBasket, Vedantu, Pharmeasy, Cars24, Infra.Market, Dailyhunt, ShareChat, UrbanCompany, Blackbuck, CarDekho, and BharatPe are among the 11 unicorns in its portfolio.
InnoVen Capital, which recently invested in BharatPe and Pepperfry, is one of India's most active venture debt investors. Alteria Capital closed its fund II last year for $177 million, with a focus on late-stage companies.
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