The International Finance Corporation (IFC), a part of the World Bank Group, will invest up to $25 million in Trifecta Capital’s fourth venture debt fund.
The fund provides debt financing to startups at Series A stage and beyond, focusing on areas like electric vehicles, financial services, climate technology, AI infrastructure, manufacturing tech, and agritech.
It also plans to expand its support to startups in consumer products, education, and healthcare sectors.
IFC said its investment supports its goal of attracting private capital, promoting digital innovation, and encouraging private sector growth that creates jobs.
Trifecta Capital launched its fourth fund on August 1, 2024, aiming to raise to ₹2,000 crore ($240 million), including a ₹500 crore extra option. The fund completed its first closing on January 30.
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“Providing more funding options to innovative startups, including flexible, cost-effective mechanisms like venture debt, is essential for India’s economic growth and job creation,” said Farid Fezoua, IFC global director for disruptive technologies, services and funds.
“IFC has been investing in India for many years. When you bring IFC into a fund, it sends a clear signal to other development finance institutions that this manager and strategy are of a certain quality and scale,” managing partner Rahul Khanna.
Trifecta Capital was founded in 2015 by Rahul Khanna and Nilesh Kothari. The firm has raised ₹5,400 crore through four venture debt funds and one growth equity fund.
It has invested about ₹8,700 crore in over 220 companies so far.
It has invested in 30+ unicorns, including meesho, Zepto, and Urban Company.
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