First close of Rs 2,000 Cr Fund IV announced by Trifecta

The first close of Trifecta Capital’s fourth and biggest venture debt fund to date has been announced. For this fund, the company intends to raise Rs 2,000 crore, which includes a Rs 500 crore greenshoe option.
By providing non-dilutive financing options for early and growth-stage new-economy businesses that normally aren’t able to obtain credit from conventional lenders like banks and NBFCs, Trifecta Capital established the groundwork for this asset class in 2015 with the launch of its first venture debt fund. Trifecta Capital has invested more than INR 6,500 crore (US$ 875 million) since its founding and has successfully raised three venture debt funds. The company asserts that it has produced all of these funds with attractive returns in terms of both IRR and DPI.
With a focus on industries like Fintech, Electric Vehicles, Consumer Products and Services, Logistics, New Age Manufacturing, B2B Services, and Core Tech, including Software and Hardware, the firm intends to invest in more than 100 businesses through Trifecta Venture Debt Fund-IV.
Additionally, the fund will actively look into opportunities in new industries like sustainability, climate, and renewable energy, which are now drawing mainstream capital and are expected to grow significantly over the next ten years, according to Trifecta. The company has previously made investments in BatterySmart, Euler, and Hygenco, a prominent green hydrogen company. It is now assessing additional businesses in these rapidly expanding industries.
After the full drawdown of Trifecta Venture Debt Fund III, Trifecta is currently actively recycling capital from the fund. The overall credit costs for all of its venture debt funds have been kept under 0.8%. Additionally, there is no capital loss for any investor and a substantial boost to fund returns due to the combined capital gains from equity options across the funds exceeding Rs 700 crore.
With four venture debt funds and one growth equity fund, Trifecta Capital has raised Rs 5,300 crore ($715 million) to date. Its $67 billion portfolio includes investments in more than 200 companies, including more than 30 unicorns, totaling Rs 7,800 crore ($1.06 billion), including recycled capital.
Trifecta has chosen a number of companies to include in its portfolio: Atomberg, BigBasket, BlueStone, Country Delight, Cars24, Cashfree, Rebel Foods, Shadowfax, CarDekho, Curefit, DailyHunt, Infra.Market, Livspace, Meesho, PaperBoat, EatFit, UrbanCompany, Zolve, and Zepto.