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BlackSoil Raises INR 250 Cr To Back Growth-Stage Startups With Debt Funding

BlackSoil Invests In Loanzen Finance, SVCL, and CMS IT Services In Debt Funding
SUMMARY

The alternative credit platform will target mid and growth-stage startups via its debt products

BlackSoil has participated in over 130 deals, deploying more than $300 Mn in the process

BlackSoil last invested in March 2022, when it invested a total of INR 20 Cr in Blu-Smart Mobility, BigHaat, and LoanTap

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Mumbai-based debt funding firm BlackSoil has raised INR 250 Cr (around $30 Mn) from family offices, UHNIs/HNIs and investment institutions. The alternative credit platform will target mid and growth-stage startups via its debt products.

The debt financing platform last raised INR 110 Cr in November 2020 in the first close of its credit fund.

Speaking on the development, Ankur Bansal, cofounder, BlackSoil, said, “The onward lending we will be doing with these funds is via products with amortising & fixed payout structures which significantly reduce business and time risk, and safeguard the investment. This has enabled us to raise this capital even amidst market volatility.”

It is prudent to mention here that funding in Indian startups is at the lowest it has been during the year. In September, Indian startups only raised around $810 Mn, making it the first time monthly funding went below $1 Bn in 2022. Even though major investors such as Sequoia, Accel and others have announced new funds for India, the startups are raising less money than last year.

BlackSoil is a sector-agnostic credit platform that has an NBFC and 4 AIFs and has participated in over 130 deals, deploying more than $300 Mn in the process. During FY22, the debt financing platform deployed over $90 Mn across 30 companies in multiple sectors. BlackSoil has also invested in nine unicorns so far, including the likes of Purplle, OYO Rooms, Udaan and more.

The debt financing platform has the backing of more than 20 family offices and HNIs and has $100 Mn+ in assets under management (AUM).

“Strategic partnerships, acquisitions and talent addition have bolstered our organic initiatives to expand and deepen our vision to be the most sought-after partner to founders, enterprises as well as investors”, Ankur added.

BlackSoil last invested in Indian startups in March 2022, when it invested in Blu-Smart Mobility, BigHaat, and LoanTap. The debt financing platform deployed a total of INR 20 Cr ($4.5 Mn) in debt across the three companies.

Before this, the debt financing platform participated in an INR 50 Cr debt round of Udaan in September last year. It also participated in the INR 20 Cr venture debt round of furniture startup Furlenco last year.

BlackSoil was one of the most active investors in the Indian startup ecosystem last year, per Inc42 data.

Fund Launches In India

Investors in Indian startups have launched or announced investment funds worth $16 Bn in 2022 so far, 2.6X higher than 2021’s $6 Bn, according to an Inc42 report. Interestingly, a majority of the funds announced were assigned to early- and growth-stage startups in India. 

The largest fund that was launched this year was Sequoia’s India and SEA fund worth $2.8 Bn, of which $2 Bn was dedicated to Indian early-stage startups. This fund was also the largest-ever fund for the region by the US-based marquee investor.

Apart from Sequoia, there have been four more funds worth $500 Mn or above from Elevation, Accel, Jungle Ventures and Bertelsmann India.

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