BlackSoil NBFC Secures ₹100 Crore in Rights Issue

BlackSoil NBFC, the flagship arm of BlackSoil Group, an alternative credit platform, raised equity of ₹100 crore from its existing Indian investors and family offices through a rights issue. The capital injection will improve BlackSoil NBFC's credit profile and boost its borrowing capabilities, supercharging the Company's growth. 

BlackSoil's Investor Confidence

BlackSoil is backed by marquee investors and family offices of Allcargo Logistics, Navneet Education, Mahavir Agency, and Mathew Cyriac-led Florintree Advisors. The full subscription of the ₹100 crore rights issue indicates the investors' reposed confidence and in the Company’s vision and growth trajectory. 

This latest funding round marks BlackSoil NBFC's fourth capital infusion within eight years, bringing its total equity raise to approximately ₹250+ crore. Additionally, it has secured debt financing of over ₹1,700 crore from HNIs, banks and other NBFCs, further bolstering its financial position.

BlackSoil provides customised alternative credit solutions to growth companies, financial institutions, NBFCs and MSMEs across diverse sectors. Leveraging a cash flow-focused robust underwriting methodology, the Company is a preferred lender for new-age economy businesses. 

BlackSoil has built a high-quality loan book consisting of top-notch investments. At the group level, it has surpassed ₹5,000 crore disbursement across 214 deals by December 2023. Its portfolio includes investments in high-growth businesses such as ideaForge, Upstox, Bluestone, OYO, Udaan, Zetwerk, Spinny, Yatra, Purplle, and Curefoods.

BlackSoil's AUM grew around 30% Y-o-Y in the calendar year 2023, reflecting its robust performance and growing market presence. With around 30% Y-o-Y increase in investment, it deployed ₹1650 crore across 63 deals and exited from over 20 deals in CY23, demonstrating the strength and maturity of its investment portfolio. The company's ability to generate profitable exits highlights its proficiency in identifying and nurturing high-growth businesses. 

The strength of BlackSoil NBFC’s funding is evident in its portfolio companies collectively raising equity of $800 million in CY23, and three of its portfolio companies, namely Yatra, ideaForge and Cellecor, getting listed on the exchanges in the same year. 

Mr. Ankur Bansal, Co-founder & Director of BlackSoil, commented, "We are thrilled to receive continued support from our esteemed investors, which underscores their confidence in our vision and capabilities. This funding will enable us to accelerate our growth trajectory and further solidify our position as a leading player in the alternative credit space. While supporting the growth aspirations of our clients, we are committed to delivering value to our stakeholders".

BlackSoil investor Mr. Gnanesh (Sunil) Gala, Managing Director, Navneet Education, added, "BlackSoil has demonstrated exceptional expertise in providing innovative financing solutions to businesses across diverse sectors. With a strong asset base, this equity round will equip the Company to expand our assets under management (AUM) in new-age economy sectors. Its extensive deal experience provides valuable business performance data, enhancing its credit assessment capabilities as it grows further, exploring new sectors and foraying into new business verticals. I proudly support their mission of driving sustainable growth and empowering the Indian economy." 

BlackSoil recently unveiled its supply chain financing vertical, SaralSCF, as a part of its strategic expansion plan to empower new economy businesses with customised financing solutions. SaralSCF has already disbursed over ₹1,500 Crore and onboarded more than 110 Anchor Partners.