When Rahul Khanna and Nilesh Kothari co-founded Trifecta Capital in 2015, their vision was clear—to empower Indian startups with smarter, more flexible funding options beyond traditional equity. Nearly a decade later, that vision has found a powerful ally. The International Finance Corporation (IFC), the World Bank Group’s private sector arm, has announced it will invest up to $25 million in Trifecta Capital’s fourth venture debt fund.
For India’s fast-evolving startup ecosystem, this isn’t just another cheque—it’s a validation of the venture debt model and its growing role in fueling innovation. The fund, which aims to raise up to ₹2,000 crore (including a ₹500 crore greenshoe option), is designed to support startups from their Series A stage onwards.
The focus areas read like a roadmap to India’s future: electric vehicles, climate tech, AI infrastructure, manufacturing, financial services, and agritech. At the same time, Trifecta plans to widen its reach into consumer, education, and healthcare, deepening its impact across sectors that touch everyday lives.
Over the years, Trifecta Capital has raised ₹5,400 crore across four venture debt funds and one growth equity fund, deploying about ₹8,700 crore across 220+ companies. Its portfolio already counts over 30 unicorns, including household names like Meesho, Zepto, and Urban Company.
For IFC, this move reflects a bigger strategy. The institution has committed to doubling its annual investments in India to $10 billion by 2030, focusing more deeply on state-level engagement and job creation. “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’s global director for disruptive technologies, services and funds.
For founders navigating the challenges of scaling up, this collaboration could mean more than just capital. It signals a stronger safety net, a bridge to sustainable growth, and a chance to build globally relevant companies from Indian soil.
-By Muskan Dengra
