NBFCs BlackSoil Capital & Caspian Debt To Merge Via Share Swap Deal

SUMMARY

“After the merger is complete and regulatory approvals are received, Caspian Debt will be fully integrated into BlackSoil,” BlackSoil said in a statement

The merger will position BlackSoil, the combined entity, as one of the largest players in the alternative credit segment

With this merger, the combined entity will be able to deliver enhanced value to various stakeholders including clients, shareholders, lenders, investors and employees

Alternative credit provider Blacksoil Capital and impact investment lender Caspian Debt have got unanimous approval from their boards of directors to merge via a share swap agreement.

“After the merger is complete and regulatory approvals are received, Caspian Debt will be fully integrated into BlackSoil,” BlackSoil said in a statement.

The merger will position BlackSoil, the combined entity, as one of the largest players in the alternative credit segment.

With this merger, the combined entity will be able to deliver enhanced value to various stakeholders including clients, shareholders, lenders, investors and employees.

Additionally, the merger will also boost operational efficiency, client base, and market presence while giving a competitive edge.

It will broaden BlackSoil’s geographical footprint across major metro cities like Mumbai, Hyderabad, Delhi, and Bengaluru, the statement added.

While the combined entity will boast an AUM of over INR 2,000 Cr, it will leverage the combined expertise of having financed over INR 10,000 Cr across over 450 Startups, MSMEs and companies.

“BlackSoil Capital and Caspian Debt share an unwavering vision of excellence and a steadfast dedication to providing best-in-class credit solutions. United, we will leverage our collective strengths to spearhead transformative innovations and forge a path of sustainable, long-term growth in an ever-evolving marketplace,” BlackSoil Capital cofounder Ankur Bansal said.

“Synergising our core competencies, across diversified asset classes, Caspian and BlackSoil will continue to catalyse innovation and growth and will be market leaders in providing creative credit solutions to high-growth companies and entrepreneurs,” Caspian Debt’s CEO and MD Avishek Gupta added.

The development comes a few months after BlackSoil raised equity of INR 100 Cr for its NBFC arm in March from its existing Indian investors and family offices through a rights issue.

Founded in 2016 by Bansal, BlackSoil is an alternative credit platform comprising an NBFC and AIF. It provides customised alternative credit solutions to growth companies, financial institutions, NBFCs and MSMEs across diverse sectors.

It counts the likes of family offices of Allcargo Logistics, Navneet Education, Mahavir Agency, and Mathew Cyriac-led Florintree Advisors among its investors.

On the other hand, Caspian Debt NBFC which was founded in 2013, specialises in providing financial solutions to small and medium enterprises (SMEs).

It is backed by renowned international impact investors, such as FMO, GrayMatters Capital and Triodos Investment Management.

It claims to have deployed more than INR 4,000 Cr to over 250 institutions since its inception.

The development comes at a time when investment firms are announcing their merger to expand and streamline their offerings in India.

For instance, in July, the US-based venture capital firm General Catalyst announced its merger with Delhi NCR-based early-stage investment firm Venture Highway to expand its presence in India.

Alongside this, some of the investment firms have also pulled out of Indian markets and some have stopped their investment in India due to a lack of lucrative returns from the country.

While Sequoia India spinned off from its US parent to rebrand as Peak XV Partners, Omidyar Network, backed by eBay founder Pierre Omidyar India will completely transition out of the Indian market by the end of 2024.