/entrackr/media/media_files/2025/01/30/ryj5btKdaYfZnYVoAYrk.png)
Venture debt firm Trifecta Capital has announced the first close of its fourth and largest venture debt fund to date. The firm plans to raise Rs 2,000 crore (including a greenshoe option of Rs 500 crore) for this fund.
Trifecta Capital launched its first venture debt fund in 2015, laying the foundation for this asset class by offering non-dilutive financing solutions for early and growth-stage new-economy companies that typically cannot access credit from traditional lenders like banks and NBFCs. Since its inception, Trifecta Capital has successfully raised three venture debt funds and has invested over INR 6,500 crore (US$ 875 million) to date. The firm claims to have generated attractive returns in terms of both IRR and DPI across all these funds.
Through Trifecta Venture Debt Fund - IV, the firm plans to invest in over 100 companies, focusing on sectors such as Fintech, Electric Vehicles, Consumer Products and Services, Logistics, New Age Manufacturing, B2B Services, and Core Tech, including Software and Hardware.
According to Trifecta, the fund will also actively explore opportunities in emerging sectors like renewable energy, climate, and sustainability, which are now attracting mainstream capital and are poised for significant growth in the coming decade. The firm has already invested in Hygenco (a leading green hydrogen company), Euler, and BatterySmart and is currently evaluating other companies in these high-growth sectors.
Currently, Trifecta is actively recycling capital from Trifecta Venture Debt Fund III following its full drawdown. Across its venture debt funds, total credit costs have been managed at less than 0.8%. Furthermore, the aggregate capital gains from equity options across the funds exceed Rs 700 crore, resulting in zero capital loss to any investor and providing a significant positive impact on fund returns.
To date, Trifecta Capital has raised Rs 5,300 crore ($715 million) across four Venture Debt Funds and one Growth Equity Fund. It has invested Rs 7,800 crore ($1.06 billion), including recycled capital, in over 200 businesses, including more than 30 unicorns, with a portfolio valued at $67 billion.
Some of Trifecta’s selected portfolio companies include Atomberg, BigBasket, BlueStone, Country Delight, Cars24, Cashfree, Rebel Foods, Shadowfax, CarDekho, Curefit, DailyHunt, Infra.Market, Livspace, Meesho, PaperBoat, EatFit, UrbanCompany, Zolve, and Zepto.