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Exclusive: Trifecta Capital lines up $161 mn Fund III in mid-2021

11 Nov, 2020

Gurugram-headquartered venture debt firm Trifecta Capital will go on the road early next year to raise a third fund with a target corpus of $161 million (Rs 1200 crore according to current exchange rates), a top executive at the firm told TechCircle.

“Given the pace at which we are deploying, we will raise Fund III some time in the middle of next year,” Rahul Khanna, co-founder and managing partner at Trifecta Capital, said. 

Watch the video in which Khanna spoke extensively about the firm’s investing strategy through and post the Covid-19 pandemic, plans for the third fund and future innovations.

Trifecta is currently investing from the $103 million Fund raised in 2019.

The five-year venture lender has invested close to Rs 1,700 crore from its two previous funds thus far. Limited partners or investors in the earlier funds included multiple private and public sector banks, insurance companies, SIDBI’s fund of funds and close to 25 Indian family offices.

“Rather than continually raising fund-sizes, we will recycle some of the prior funds, calling the current  fund, so you have both running parallely. Staying in the Rs 1,000-1,200 crore range allows us to be disciplined on the kind of companies we are investing in,” said Khanna.

The firm’s portfolio companies include BigBasket, Ninjacart, Vedantu and Pharmeasy among others. It has invested close to Rs 150 crore in Bigbasket alone over the years.

Also read: Blacksoil founder Ankur Bansal on why FY20 will accelerate the growth of venture debt

Khanna said that the current deployments are being made in the focus areas of Bharat-focused technology and software-as-a-Service (SaaS) businesses.  

The firm has also come up with a SaaS platform for treasury management for startups. The platform, which has been in operation for close to seven months now, is being used by two large venture capital firms to track cash flow management by their portfolio companies. 

“We have also appointed a council of eight CFOs, some of whom are from portfolio companies to take continuous feedback on what else needs to be built into the platform. We are paid for use of the platform in a percentage of the asset under management,” he added.

Khanna added that Deepak Mohan, former head of liabilities at RBL Bank who joined Trifecta Capital as a partner in May 2019, heads the treasury management platform.

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