Synopsis
As an increasing number of mature startups target the equity markets for a public market listing, late stage is emerging as a big investment opportunity for such funds.
ETtech
Illustration: Rahul Awasthi
Venture debt provider Trifecta Capital is now looking at starting an equity venture capital fund of Rs 1,500 crore to invest in leading startups that are likely to IPO in the next three years.
As an increasing number of mature startups target the equity markets for a public market listing, late-stage is emerging as a big investment opportunity for such funds.
“Trifecta Leaders Fund will invest in a targeted set of category-leading startups, selected predominantly from Trifecta Capital’s portfolio across its venture debt funds,” the firm said in a release.
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The transaction would double the company’s valuation in less than 24 months. SoftBank Vision Fund had picked up a 40% stake in the company in 2019, valuing it at about $1.1 billion. FirstCry received $400 million in fresh equity from the Masayoshi Son-led fund as part of a Series E funding round.
The final quantum or number of new investors is expected to get finalised soon, as is the stake dilution which is expected to be less than 10%. According to the people cited above, the company aims to go public in 24-36 months and wants to realign its capitalisation table before that.