Gurgaon based, Trifecta Capital Advisors, a newly launched venture debt firm, has invested Rs 36 crore in three prominent startups. It was just 2 months back that the firm successfully closed its maiden fund.
The debt financing firm has backed express surface logistics firm Rivigo, Hyderabad-based kidney care clinic chain NephroPlus and messaging platform HelpChat. The exact amounts lent to each startup have not been disclosed.
Rahul Khanna, managing partner of Trifecta Capital, has said in a statement:
“All three companies represent the best-in-class in their respective categories, and are backed by the best risk capital investors doing the rounds in India. All of them (startups) have premium track records, and we’re confident of achieving our target returns,….The objective is to back companies that are beyond the concept stage, and have achieved scale,”
Trifecta, typically, will lend between Rs 5 crore and Rs 20 crore to companies that have at least raised a Series A funding round, with an average investment holding period of 24-36 months. The fund may also invest up to 10% of its total corpus in a single company, based on the opportunity, Category-II Alternative Investment Fund will look to make 3-4 more investments by end of fiscal 2016, Khanna added.
All three startups have been doing well and have managed to raised significant funding till now. NephroPlus has raised about $14.2 million from Bessemer Venture Partners and International Finance Corp – the private sector investment arm of the World Bank – multi-stage investment firm SAIF Partners has reportedly invested about $10 million in Rivigo. HelpChat, which was previously branded as Akosha, raised $16 million from Sequoia Capital in May this year.
Trifecta, is targeting a final corpus of Rs 500 crore for its first fund. The firm was founded by former Canaan Partners India Managing Director Khanna and former Accenture Plc senior executive Nilesh Kothari and is backed by financial institutions, family offices and corporate foundations. It counts RBL Bank, which has committed Rs 50 crore to the fund, as its anchor investor.
Venture debt has become a viable option compared with equity. Access to low-cost funds is critical for a number of Indian startups, which do not have access to conventional bank financing. Debt has its own advantages, Startups can protect cash, use the debt towards meeting working capital needs and fund low-cost Mergers and Acquisitions