Blacksoil secures ₹550 cr in funding, expands focus on structured financing

Alternative credit platform Blacksoil has secured ₹550 crore in funding in 2024 from multiple banks and institutions, said Ankur Bansal, managing director (MD) of BlackSoil. Alongside its merger with Caspian, the firm is doubling down on impact financing, particularly in climate tech, and expanding its structured funding solutions for mid-sized startups seeking acquisitions.

“We see a growing demand for financing and plan to scale accordingly. At the same time, larger ticket size will also happen. The merger will enable the company to scale its initiatives and cater to new customer segments,” said Bansal.

The company aims to maintain a steady 30% year-on-year growth in assets under management (AUM) and disbursements rather than chasing aggressive expansion. Since FY17, Blacksoil Group’s AUM has grown from ₹100 crore to ₹1,650 crore, excluding the impact of the Caspian merger. With the merger, the AUM will surpass ₹2,300 crore.

Beyond traditional lending, Bansal noted an increasing demand for structured financing, particularly from mid-sized profitable startups looking to acquire smaller players. The company sees this as a growing opportunity within the alternative credit space.

“We are seeing acquisitions as an interesting new product requirement, where mid-sized profitable startups are looking for structured funding to acquire smaller players,” Ankur noted.

At the same time, the firm is tracking shifts in the NBFC sector. While traditional microfinance faces challenges, a new wave of smaller NBFCs specializing in asset-backed lending—such as vehicle financing and gold loans—is emerging.

“We are seeing an advent of new smaller NBFCs focused on asset-backed funding, including vehicle loans and gold loans,” Ankur said.

This shift presents new opportunities, and Ankur is refining its approach to financial services in response to these evolving market trends.

The company expects at least one or two portfolio firms to go public each year, reflecting its focus on supporting high-growth startups with alternative credit solutions. “Two of our portfolio companies have announced their plans for IPOs,” said Ankur.

Previously, firms like Mobikwik, and Yatra from its portfolio have successfully gone public.