Pennyslvania fund focuses on follow-on investments with well-capitalized companies including Jai Kisan
Trifecta Venture Debt Fund – III says it has investible corpus of Rs.4,440 crore with dry powder of nearly Rs.3,000 crores, but it is navigating a macroeconomic environment which includes volatility in the equity investment pace.
“The firm endeavours to prudently invest this capital with an even higher bar in the quality of business that it works with,” said the Pennyslvania fund, the portfolio of which include some top Indian brands including Jai Kisan.
“This focus on quality helps in smoothly navigating a macroeconomic environment which includes volatility in the equity investment pace, significant changes in regulatory and compliance obligations across industries, as well as a rapidly formalizing economy,”
The credit quality of the portfolio of Trifecta Venture Debt Fund – III is exemplary, with 40% of the fund’s portfolio companies having already raised follow-on equity financing in the short period of 21 months since the first investment, despite the broader funding slowdown.
Further, the median revenue growth rates across investee companies is very healthy at 60%+ annually, said the fund.
“Key to this performance is the firm’s unwavering thesis on selection of businesses with strong moats, favourable demand supply dynamics, robust unit economics, high-pedigree founders and sound investor support.
“The fund will also focus on follow-on investments with well-capitalized companies and category leaders within the portfolio, ensuring long-term relationships while prudently mitigating any risks at a portfolio level,” it said in a release on 27 Sept 2023.
In this rapidly changing environment, Trifecta Capital has already invested Rs.1,500 crores from Trifecta Venture Debt Fund – III in the last 21 months, and over Rs.5,000 crores of venture debt cumulatively across all its venture debt funds.
Given the slowdown in venture capital investing, the Fund has been very selective with new investments and has built a portfolio of high-quality businesses which include Zepto, The Good Glamm Group, Log9, Kissht, Stashfin, Cogoport, Bobble, Rebel Foods, Cashfree Payments, Rooter, Ripplr, BIRA, Wiz Freight, Biryani By Kilo, Jai Kisan, Infra.Market, Udaan, Arzooo, Fashinza, GlobalBees, EatFit, XYXX, Infinite Uptime, Entropik, Vayana Networks, Practo, Shadowfax, Chalo, BluSmart, Celcius and Captain Fresh to name a few.
Trifecta Capital has just closed its third and largest venture debt fund, Trifecta Venture Debt Fund – III, receiving investor commitments of Rs.1,777 crores. The fund was significantly oversubscribed, exceeding the original target of Rs.1,500 crores. With this closing, Trifecta Capital has raised nearly Rs.5,000 crores across its three venture debt funds and one growth equity fund.
While seeing strong and continued support from existing investors, the fund also saw participation from a variety of new investors including large global financial institutions, domestic conglomerates, banks, insurance companies, development financial institutions, public sector entities, and reputed family offices.
A significant portion of Trifecta Venture Debt Fund – III was contributed by repeat investors, and the fund further expanded its global presence with twice the number of offshore investors, both individual and institutional, as compared to Trifecta Venture Debt Fund – II. Fiinews.com
