IFC of World Bank Group makes Indian venture debt debut in Trifecta's fourth fund

Copyright © HT Digital Streams Limit all rights reserved. The IFC of World Bank Group dip its toes in Indian enterprise debt, investing $ 25 million in Trifecta’s fourth fund Priyamvada C 4 min Read 18 Sept 2025, 01:36 IST Trifecta was founded in 2015 by Rahul Khanna and Nilesh Kothari. Summary The group’s first investment in a pure-playing business debt fund in India, by the international financial corporation, is expected to help the country attract more funding from institutional investors and expand capital requirements for venture debt. Trifecta Capital raised $ 25 million from International Financial Corporation (IFC), part of the World Bank Group, for its fourth business debt fund, a top manager at the firm said. This is the first investment of the IFC in a pure-play debt fund in India. IFC investment is expected to help India attract more funding from institutional investors and expand capital requirements for enterprise debt providers. “Providing more financing options to innovative startups, including flexible, cost-effective mechanisms such as daring debt, is essential for the economic growth and job creation of India,” says Farid Fezoua, IFC Global Director for disruptive technologies, services and funds. “Our investment in Trifecta Capital is in line with our IFC 2030 strategy to mobilize private capital on scale and drive digital innovation and the private sector-led development that provides more work,” he added. IFC is one of the largest global development institutions focusing on the private sector in emerging markets and working in more than 100 countries. In FY25, the investment firm has invested a $ 71.7 billion record to private enterprises and financial institutions in developing countries, including India. Earlier this year, IFC invested in the shorter expensive scheme of Alteria Capital, another India-focused venture debt platform, which will focus on short-term liquidity, should, among other things, the efficacy of the balance sheet, such as short-term capital needs of licensed fintech companies, consumer brands and manufacturers of electrical vehicles. Why daring debt is to the increased venture debt funds, usually bases their investment decisions on the ability of a company or the likelihood of raising another round of equity financing, and other factors such as overall financial health and cash flow. This enables startups to use their share capital for growth initiatives, and can also help companies help expand their financial runway and aim for a higher valuation. Venture debt is especially useful for businesses in the B-stage range and further the product market has reached and earned revenue, as they often want to reduce the incremental dilution for existing shareholders, while still ensuring capital to scale operations. ‘Very dry power’ Trifecta has deployed nearly £ 1,000 crore in Indian startups of its third and fourth funds since the beginning of the financial year. ‘We have actively invested in our fourth business debt fund as well as recycling capital from the third fund. We have a lot of dry powder to work with, as the majority of our latest fund has already been raised, ‘the managing partner Rahul Khanna, the investment firm, told Mint in an interview. He added that Trifecta deployed about £ 550 crore in the first quarter of FY26, and that more than £ 400 in the following three months over both of its funds in the following three months. Trifecta’s fourth fund is around £ 2,000 crore in size, including a £ 500 crore grain option, and has seen participation in new and existing investors. The latest Trifecta fund will have high impact sectors, including the ecosystem and financial services for electric vehicles, as well as the R&D-led depth technological sectors such as climate technology, AI infrastructure, manufacturing technology and Agri Tech, while accessing consumer, education and health care segments. Where Trifecta invested its first three funds was £ 500 crore, £ 1.024 crore and £ 1.777 crore. Trifecta’s investor mix usually includes insurance companies, family offices and large Japanese, US and European institutions. The firm deployed about £ 6,000 over these three funds and invested in 180 startups. The portfolio contains businesses such as Atomberg, Bigbasket, Bluestone, Country Delight, Cars24, CashFree and Rebel Foods. Historically, Trifecta’s venture debt funds typically target businesses on the range of A or B stage and beyond it wants to scale quickly. The ticket sizes of the firm have gradually increased over the years. They now range from £ 20 to around £ 200 over different tranches, depending on the needs and the stage of the business. Khanna said: “The Indian market appreciates the operational leverage and the scalability that businesses have today. Consequently, debt is incrementally playing a larger part of the financing solution, as companies need funds for working capital, inventory, logistics, acquisitions and asset creation. understand dare debt in a company’s journey. ” Founded by Khanna and Nilesh Kothari in 2015, Trifecta aims to provide an alternative form of non-thinning financing to help founders scale their businesses while retaining more control and ownership. In 2021, Trifecta launched its first £ 1,500 crore growth equity fund to invest in about a dozen late stages, including Ixigo, Cars24 and Good Glamm Group. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #World Bank #Startup Funding Read Next Story