The International Finance Corporation (IFC) will invest as much as $25 million in Trifecta Capital’s fourth venture-debt fund to support startups in high-impact areas such as the EV ecosystem, AI infrastructure, and agri-tech.

IFC, a member of the World Bank Group, is a United Nations body that invests in the expansion of the private sector in developing nations. Trifecta Capital, known for supporting businesses like the meat and seafood marketplace Captain Fresh and battery swapping service Battery Smart, aims to offer venture debt to chosen startups at the Series A stage and later through Trifecta Venture Debt Fund IV.

The injection follows an increase in demand for venture debt within India’s startup landscape to offer firms working capital and capital expenditures, without any equity dilution.

“Offering additional funding alternatives to innovative startups, such as flexible and affordable methods like venture debt, is crucial for economic growth and job generation in India,” stated Farid Fezoua, IFC Global Director for Disruptive Technologies, Services, and Funds.

Also Read: Chameleon Phones, Solar Charging Laptops, AI Ring - MWC 2025

IFC’s strategy for private equity funds emphasizes supplying growth capital to those funds that possess the greatest potential for financial and developmental impact, the firm stated.

This funding comes after IFC’s investment of $137 million aimed at enhancing India’s electric bus infrastructure.

Also Read: Inventions from Bengaluru that are Serving Tech Prowess, Societal Good

Rahul Khanna, Managing Partner at Trifecta Capital, stated, “Our collaboration with IFC strengthens our capacity to support transformative companies with adaptable, founder-friendly funding during crucial phases of their growth journey. It also strengthens our enduring dedication to climate and sustainability-focused innovation—fields where venture debt can act as a driving force in expanding impact."

Also Read: WAVES Summit 2025: Paving Way for Tech Pluralism

In January of this year, Trifecta Capital reached the first close of its fourth venture debt fund, aiming for a total size of Rs 2,000 crore. The venture debt firm secured financing from insurance firms, family offices, and corporate treasuries. The sum collected was not revealed.