Trifecta Capital raised Rs.1, 500 crores for its maiden equity fund, Trifecta Leaders Fund-I, and is planning to raise another Rs.375 crore under a green shoe option to tap strong investor demand for its fund, according to the reports.

The fund raised in May 2021 amidst the second wave of Covid 19 pandemic was announced its first close in July 2021. The company is focused on investing in late-stage Indian tech start-ups.

Reports suggest that the company has invested about Rs.730 crore in eight late-stage startups such as Dailyhunt, Livspace, Cars24, Pristyn Care, ixigo, Good Glamm Group, API Holdings (Pharmeasy) and Meesho.

Rahul Khanna, managing partner, Trifecta Capital says, “we have built a highly diversified portfolio and the common trend across all of these is that most of these companies are category leaders. All of them have a strong underlying long term growth prospect. They've demonstrated solid unit economics; in many cases are profitable in certain lines of business and they are incredibly well capitalized; just the cash on the balance sheets of these companies now is about Rs.17,000 crore, which means that they can get through a good two years without having to raise any more capital.”

“This is not a pre-IPO fund, and I think now the difference will become much clearer between funds that were trying to arbitrage timing and funds such as ours that had a fundamentally long-term view on a structural gap in late-stage venture capital, “adds Khanna.

Trifecta is seeing a good opportunity for late-stage investments this year, especially in light of recent developments where tech stocks in the US have seen a sharp correction.

Khanna says, “whatever we're seeing in the markets, what's played out in the US and some of that has played out in India too. So, 2022 could also be a very good vintage year for making new investments, because some of the valuations would likely correct on new deals as well. Companies that does need capital will raise and hopefully valuations can be more attractive.”