Trifecta Capital To Launch $200 Mn Equity Fund

The firm aims to invest in leading startups that are likely to go for IPO in the next 1-3 years

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Alternate financing platform for startups Trifecta Capital on Wednesday announced the launch of late-stage venture capital fund, Trifecta Leaders Fund– I, with a targeted corpus of $200 million.

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Through this equity fund, the firm aims to invest in new economy companies that are category leaders and likely to pursue an IPO in the next 1-3-years.

Trifecta Capital is in the process of obtaining SEBI approval for the fund and will commence investment operations post regulatory approvals.

“Through the launch of this new fund, we hope to capture the value that is expected to accrue from investing in these category-leading companies, one to three years ahead of an IPO. As the startup and investing ecosystem matures, it is natural to see large, well-known startups plan their IPOs to create liquidity for existing investors and tap the public markets for their longer-term financing needs. We believe that Trifecta Leaders Fund-I is a timely and attractive opportunity for investors who have so far been unable to access these great companies as they are predominantly funded by offshore VC and PE funds,” said Rahul Khanna, managing partner, Trifecta Capital.

Trifecta Capital has invested in over 70 companies across its two venture debt funds and its portfolio now comprises of 9 unicorns and 11 soonicorns including Big Basket, Pharmeasy, Cars24, Vedantu, Infra.Market, ShareChat, Dailyhunt, UrbanCompany, CarDekho, Blackbuck, Ninjacart, NoBroker, Kreditbee, Dehaat, Turtlemint, Livspace and BharatPe amongst several others.

They have cumulatively raised $8.1 billion of equity, and are cumulatively valued at $20 billion. With the launch of Trifecta Leaders Fund–I, the firm is extending its platform capabilities as a lifecycle capital provider to the startup ecosystem.

“Having built a strong foundation over the last six years, we are expanding the Trifecta Capital platform to address new investment opportunities arising in the maturing Indian tech ecosystem. We will partner with companies by investing in minority stakes, either as part of a primary raise or secondary round, making it possible for early shareholders, including angels, seed funds, founders, and employees, to realize early returns and reinvest capital in the ecosystem. With the addition of this fund, Trifecta Capital can truly be a lifecycle partner to startups, starting with venture debt at the early and growth stage and then with equity financing at the late stage,” stated Nilesh Kothari, managing partner, Trifecta Capital.

Trifecta Leaders Fund – I will invest in a targeted set of category-leading startups, selected predominantly from Trifecta Capital’s portfolio across its venture debt funds where the firm has proprietary knowledge of the businesses as well as a deep relationship with the founders and Investors. The fund will invest $15-30 million each in around ten companies for minority stakes, through a combination of primary and secondary positions. The Firm has already built a strong pipeline of twenty companies as potential portfolio candidates.

With fund duration of only five years, Trifecta Capital believes this Fund provides a unique investment opportunity for investors, both domestic and offshore, to partner with India’s new economy category leaders that are already household names and will continue to grow significantly over this decade.  

“At Trifecta Capital, we are leveraging our existing relationships as well as strong equity investing and exit experience to extend our financing capabilities to late-stage companies. Having been involved with many of the target investee companies, this is not a typical blind-pool fund. We have already constructed a reference portfolio for the fund and are actively engaged in locking down our first few investments so that we can deploy the fund more predictably. Our team is equipped with the necessary skills and experience to execute on the fund strategy and will fill a systemic gap in the late-stage VC financing landscape,” added Lavanya Ashok, partner, Trifecta Capital.

Since inception, Trifecta Capital has deployed over $ 274 million and aims to be the financial partner of choice for leading new economy companies.