IFC is set to invest $25 Mn in Trifecta Capital’s Fund IV

The International Finance Corporation (IFC), the World Bank Group’s private sector arm, is set to invest up to $25 million in Trifecta Capital’s fourth venture debt fund.

The fund provides debt financing to startups at the Series A stage and beyond, with a focus on sectors such as electric vehicles (EVs), financial services, climate tech, artificial intelligence (AI) infrastructure, manufacturing tech, and agritech. It also plans to expand into consumer, education, and healthcare segments.

According to IFC, this move is in line with its strategy to mobilise private capital, support digital innovation, and promote private sector-led development that creates jobs. It plans to double its annual commitments in India to $10 billion by 2030, with a deeper focus on state-level engagement.

Trifecta Capital launched its fourth fund, aspiring to raise up to Rs 2,000 crore, including a greenshoe option of Rs 500 crore. 

Co-founded in 2015 by Rahul Khanna and Nilesh Kothari, Trifecta Capital has raised Rs 5,400 crore across four venture debt funds and one growth equity fund and deployed about Rs 8,700 crore, including recycling, across more than 220 companies. The firm has invested in over 30 unicorns, including Meesho, Zepto, and Urban Company.

“Providing more funding options to innovative startups, including flexible, cost-effective mechanisms like venture debt, is essential for India’s economic growth and job creation,” said Farid Fezoua, IFC global director for disruptive technologies, services and funds.