Trifecta Capital Files For Rs. 1,500 Crore Late-Stage VC Fund

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

Trifecta Capital, India’s leading provider of Venture Debt, is planning to launch a late-stage venture capital fund - Trifecta Leaders Fund – I, with a targeted corpus of Rs. 1,500 Crores. 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 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. All these companies are backed by marquee, global VC funds and have created substantial value in the digital economy. They have cumulatively raised US$ 8.1 billion of equity, and are cumulatively valued at US$ 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.

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 US$ 15-30 million each in around 10 companies for minority stakes, through a combination of primary and secondary positions. The Firm has already built a strong pipeline of 20 companies as potential portfolio candidates.

The Fund is filling a structural gap in the late-stage VC ecosystem in India, and in addition to primary infusions, will cater to the unmet needs of late-stage companies by providing off-cycle liquidity to early investors, angels, current and former employees including consolidation of equity cap tables.

The Fund leadership team has a cumulative 75+ years of lifecycle investing, operating and entrepreneurial experience across global institutions like Canaan Partners, Accenture and Goldman Sachs. With the onboarding of Lavanya Ashok as Partner (ex-MD Goldman Sachs, Principal Investment Area) with significant PE and late stage VC investment experience and Surbhi Garg as a VP (ex- Reliance Jio Strategic Investments) with significant transaction experience including secondary buyouts, the Firm is building an exceptional team with strong capabilities for execution of the equity strategy. Trifecta Leaders Fund – I has also established a best-in-class governance framework with a global advisory board comprising domain-knowledge experts who can support portfolio companies as they navigate their path to liquidity.

With a Fund duration of only 5 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.

As of March 2021, there are 40 unicorns in India, up from 5 in 2014 and expected to grow to 100 by 2025. Presence of large unicorns/platforms as well as favorable regulatory changes to ease start-up listing is expected to result in a large number of IPO and M&A opportunities in the country and aid exits. In this maturing start-up eco-system, with its unique heritage, access and relationships, Trifecta Capital is well-positioned to be a reliable partner-of-choice for Founders of late-stage technology companies.

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

Rahul Khanna, Managing Partner said, “Through the launch of this new Fund, we hope to capture 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.”

Nilesh Kothari, Managing Partner said, “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.”

Lavanya Ashok, Partner said, “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.”

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