2 August 2021 – New Delhi-based Trifecta Capital, a venture debt fund, announced that it has closed its late-stage fund for the first time at INR 1,000 Crore (USD 134 Million, approx). The firm has backed many prominent players in the market like Vendantu, BigBasket, Pharmeasy etc.
The fund has the best existing investors and top-notch strategy, creating a perfect situation for raising funds. Because of the ongoing COVID-19, almost every work is done virtually.
“The real work begins now; so excited to start investing this capital into some very high-quality opportunities,” – Rahul Khanna, Co-founder and Managing Partner.
Rahul stated that Trifecta Capital has been backed by financial institutions in the past. The company is building fresh partnerships with fund providers outside the country, who are expected to take their steps in the Indian market. The firm is trying to close its funds in the next six months of 2021.
“Often, raising capital in India is hard but what we found is that once you have some track record and some performance, it’s easy to get capital from investors,” says Rahul.
“The fund is mainly targeting late-stage companies that are one to three years away from a liquidity event like an IPO or a strategic sale. The transaction size would be around Rs 100-200 crore per company.” – he adds
“We have a great pipeline of opportunities because we’ve been working with many companies through our venture debt funds,” he says. The fund has backed nearly 75 companies in the last five years with venture debt, and most of those companies would be natural options for the fund to invest in.
According to Rahul, valuations are a function of demand and supply. There is a lot of supply of capital, which is why companies can command a significant premium.
“You can either buy good or you can buy cheap, and our preference would be to buy good companies,” he says. They intend to back either the category leaders or key challengers as these are the kind of companies that would be around for a long time.
Rahul added that there is a change of ideology of private offering from public goods. Banking, media and insurance used to come under the public domain but now they have changed into private, with technology and capital. Transport, food, healthcare, and energy are all part of the public domain today but in the next 10 years, they will transform into private.
“We are very excited about how technology and capital can transform some of these sectors that are right for disruption,” says Rahul.
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