India’s leading venture debt fund, Trifecta Capital has infused INR 20 crores in debt financing in Revenue Based Financing platform, Klub. Trifecta’s investment in Klub has a multi-pronged thesis. The financing will help Klub scale their technology, product and assets under management, and serve as a partnership opportunity for both companies to collaborate on various ways to support digital-first companies.
Launched in 2015, Trifecta pioneered venture debt in India with the launch of its first debt fund. Today, Trifecta is shaping India’s new economy by partnering with category leaders that are already executing at scale, and will continue to grow significantly over this decade. Recently, Trifecta also announced an equity fund, Trifecta Leaders Fund – I, to complement its venture debt funds. With its venture debt, later stage equity and financial solutions platforms, Trifecta is now uniquely placed to be a full lifecycle partner for start-ups and founders.
Klub is India’s leading Revenue Based Financing platform which has enabled flexible capital in 100+ companies in the D2C, online, and omnichannel consumer ecosystem. Klub recently announced the closure of its $20 million seed round, which included venture debt from Trifecta Capital.
Klub and Trifecta have operational synergies as both believe in enabling companies to raise complementary capital. Trifecta provides venture debt to growth-stage startups typically in conjunction with equity. Klub provides capital for repeat high ROI spends like marketing, inventory, capex etc. for digital-first brands across direct-to-consumer and online marketplaces.
Commenting on the funding, Anurakt Jain, Co-founder & CEO of Klub said, “We have always believed that high-growth companies will utilize multiple forms of complementary financing. The investment partnership with Trifecta is not only an endorsement of Klub’s platform but also a testament to our complementary nature. We are elated to be backed by pioneers with a deep understanding of the ecosystem in our mission to provide growth capital to digital-first companies.”
Commenting on the funding, Rahul Khanna, Managing Partner, Trifecta Capital said, “Trifecta was born to reduce the major gap in the debt financing ecosystem in India. Our investment in Klub, which is India’s leading Revenue Based Financing platform, is an extension of the same thesis. Klub’s programmatic lending approach allows Trifecta to increase its reach to companies that are looking to raise debt for financing growth.”
“The COVID-19 pandemic has made clear that, as an ecosystem, it is important that startups have a range of financing solutions available to them, besides equity financing. Revenue Based Financing has shown its merit in markets outside India. And, the increasing number of consumer brands and SMEs opting for the digital route in India has opened up immense growth opportunities for Revenue Based Financing here as well”, Rahul added.
Trifecta’s portfolio spread and network of public & private partnerships will open up avenues for future engagement opportunities for Klub. Klub’s portfolio companies will have access to repeat capital infusion via Revenue Based Financing and an opportunity to work with Trifecta in later stages of fund-raising and growth.
Klub is India’s leading revenue-based financing platform providing flexible growth capital to digital-first companies and SMEs. Klub provides funding for recurring marketing, inventory, and capex spends to a wide variety of digital-first companies and SMEs across e-commerce, D2C, ed-tech, SaaS and the broader digital commerce spectrum. Revenue based financing takes a revenue share as returns instead of equity dilution, fixed EMIs, and personal guarantees, making it ideal for a post-Covid financing ecosystem. Klub has raised two rounds of capital from 9Unicorns, Surge (Sequoia Capital India’s accelerator fund), Alter Global, GMO VenturePartners, EMVC Fintech Fund and marquee global angels.
About Trifecta Capital
Founded in 2014, Trifecta Capital is India’s leading alternate financing platform for startups across their life cycle. With tailor-made financing and advisory solutions, Trifecta Capital serves market leaders and category creators across domains like B2B, Consumer Services, Consumer brands, E-commerce, Mobility, EdTech, AgriTech, FinTech and Healthcare. It has raised over INR 2,500 crores (US $ 333 million) across two Venture Debt Funds and one Late-Stage Equity Fund. It has also built a customised advisory tech platform which is used by 50+ fast growing startups and has an AUA of INR 1,000+ crores (US $ 133 million). Since inception, Trifecta Capital has deployed over INR 2,300 crores (US $ 306 million) across 85+ startups, and aims to be the financial partner of choice for leading New Economy businesses in India.