Venture debt provider, Trifecta Capital, is planning to launch a late-stage venture capital fund – Trifecta Leaders Fund – I with a targeted corpus of ₹1,500 crore. 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 to 3 years.
Trifecta Capital has invested in over 70 companies across its two Venture Debt funds and its portfolio now comprises 9 unicorns and 11 unicorns including BigBasket, 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 the marquee, global VC funds and have created substantial value in the digital economy. 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 life cycle capital provider to the start-up ecosystem.
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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.
Trifecta Leaders Fund – I will invest in a targeted set of category-leading start-ups, 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 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.
“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 start-up and investing ecosystem matures, it is natural to see large, well-known start-ups 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, in a statement.
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 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. Trifecta Leaders Fund – I have 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.