The Rs 300-crore debt fund is being started in partnership with Nilesh Kothari, former M&A head of Accenture India.
Venture Capital firm Canaan Partners MD Rahul Khanna has announced to start a venture debt firm called Trifecta Capital Partners. The Rs 300-crore debt fund is being started in partnership with Nilesh Kothari, former M&A head of Accenture India, as reported by Economic Times.
Trifecta will be a new entrant in the venture debt segment in India which currently has players such as US-based Silicon Valley Bank (SVB). The new fund will lend to start-ups that have already raised Series A or B round of funding and will offer Rs 5-15 crore at a 16 per cent annually compounded rate.
"We plan to lend about Rs 100 crore each year. Demand for venture debt in India is about Rs 1,000 crore, out of the Rs 6,000 crore venture capital investments in India annually. However there is no avenue where domestic investors could play in this game," khanna told ET.
SVB India has so far financed almost 70 start-ups such as Myntra, Snapdeal, Carwale, Zoomin, Manthan Systems and Sankhya Labs. Trifecta Capital Partners is in the process of applying to the Securities and Exchange Board of India (SEBI) for official approval to start the fund within three months.
The revenue model of Trifecta will involve a management fee of about 2 per cent on the amount disbursed in addition to profit sharing upon exit besides 16 per cent interest, the report states further.