The fundraising comes at a time when the domestic capital pool has expanded and is competing with global risk money to get a meaningful share of India’s growth story.
The total fund size of the third fund is Rs 1,000 crore, with a green shoe option of Rs 500 crore, which the firm is likely to mop up by the end of the current financial year.
The fund aims to serve the fast-growing demand for growth and acquisition financing in Indian startups across sectors such as business-to-business, consumer services, consumer brands, ecommerce, mobility, edtech, agritech, fintech and healthcare. As of November 15, it has raised over Rs 3,500 crore across three venture debt funds and one late-stage venture capital fund.
Since inception, Trifecta Capital has committed Rs 3,500 crore in venture debt and equity investments across more than 85 companies. So far this year, 37 startups have entered the unicorn club of privately held companies worth $1 billion or more. The sector has attracted $35 billion in equity financing year to date.
The funds’ backers include new and existing limited partners (LPs) such as banks, insurance companies, development finance institutions, corporates, endowments, and some of India’s largest family offices, it said in a statement.
Earlier this year, the firm had announced the final close and oversubscription of Trifecta Venture Debt Fund-II at Rs 1,025 crore, as well as the first close of its late-stage equity offering, the Rs 1,500-crore Trifecta Leaders Fund-I.
Its first fund raised in 2015 is now in its seventh year and has delivered consistent returns on a quarterly basis through some very challenging years for the Indian economy. It returned 100% of the capital to investors and is now focused on harvesting the capital gains from the equity options that it holds across portfolio companies.
Some of its portfolio companies include BigBasket, PharmEasy, Cars24, Infra.Market, ShareChat, Dailyhunt, Urban Company, Vedantu, The Good Glamm Group, CarDekho, BlackBuck, Ninjacart, NoBroker, Dehaat, Turtlemint, Servify, Livspace, CureFit, Meesho, Ixigo, Mobikwik, Builder.ai and BharatPe amongst others.
“It is rare to raise two Funds in the same year, and we have been fortunate to do it thanks to our investors, our team, our portfolio partners, and our friends from the venture capital industry,” said Rahul Khanna, managing partner at Trifecta Capital.
Trifecta joins a growing list of homegrown funds that are raising rupee capital to invest in Indian startups. Funds such as Alteria Capital, Stride, IIFL, Edelweiss, 3one4 Capital among others have recently raised larger funds to deploy in the burgeoning startup ecosystem in the country.
“Over the next two years, we will continue to introduce more interesting products and services to solve for large gaps within this ecosystem,” said Nilesh Kothari, managing partner at Trifecta Capital.
