The International Finance Corporation (IFC), the private sector arm of the World Bank Group, is set to invest up to $25 million in Trifecta Capital’s fourth venture debt fund. The fund aims to raise up to Rs 2,000 crore, including a greenshoe option of Rs 500 crore.
Backing Innovation Across Sectors
Trifecta’s latest fund will provide debt financing to startups from Series A stage onwards, focusing on high-growth sectors such as electric vehicles (EVs), financial services, climate tech, AI infrastructure, manufacturing tech, and agritech. The fund also plans to expand into consumer, education, and healthcare segments.
According to IFC, the investment aligns with its broader strategy to mobilise private capital, support digital innovation, and strengthen private sector-led job creation. IFC has committed to doubling its annual investments in India to $10 billion by 2030, with a sharper focus on state-level development.
Trifecta’s Track Record
Founded in 2015 by Rahul Khanna and Nilesh Kothari, Trifecta Capital has built a strong position in India’s venture debt ecosystem. The firm has raised Rs 5,400 crore across four venture debt funds and one growth equity fund, deploying nearly Rs 8,700 crore (including recycling) into more than 220 companies. Its portfolio includes over 30 unicorns, such as Meesho, Zepto, and Urban Company.
Farid Fezoua, IFC’s global director for disruptive technologies, services, and funds, said, “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.”
Final Take
IFC’s backing strengthens Trifecta’s ability to offer non-dilutive capital to India’s emerging startups, reflecting growing global confidence in venture debt as a critical financing tool for innovation-driven growth.
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