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NBFC BlackSoil Raises INR 22 Cr Through NCDs in March The funds raised will be used to fund primarily growth startups and MSMEs

By Prabhjeet Bhatla

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BlackSoil

Mumbai-based credit platform BlackSoil Capital Pvt. Ltd announced to have successfully raised yet another round of secured debentures of INR 22 crore through private placement to family offices and HNIs.

The funds raised through this NCDs issue will be utilized primarily for lending activities, to fund primarily growth startups and MSMEs. Since its inception 4.5 years ago, BlackSoil has raised a total of INR 287 crore via multiple non-convertible debentures (NCD) issues and around 30 per cent of the same has been repaid back as well.

"With the pandemic accelerating the number of venture debt deals across industries, the Indian startup ecosystem is currently poised to become a significant hub for opportunities in the alternative capital segment. At BlackSoil despite COVID, we have seen massive 35 per cent growth in disbursement amount compared to last year, which makes us confident that emerging businesses have finally warmed up to the concept of considering alternative avenues of fundraising. With that in mind and with a strong focus to help promising new age economy companies in their mission to scale up and provide robust debt solutions, we are excited about the immense possibilities that lie ahead of us," commented Ankur Bansal, director and co-founder, BlackSoil, in a statement.

The company's NCD program has enabled them to quickly raise funds at rates competitive with financial institutions & with longer tenures, in spite of limited capital availability to the non-banking financial company (NBFCs) and the economic repercussions since the IL&FS crisis. BlackSoil has reduced coupons by 1.5 per cent which means the pricing has been lowered by 150 bps in the past year despite pandemic and negative sentiments around the NBFC sector in general. The rate at which the funds have been raised demonstrates the strong market confidence of the investors in the platform. Over the last two-three years, BlackSoil has created a strong network of more than 200 high net-worth families and corporates who have shown tremendous support by investing in multiple series, the company shared.

The venture debt ecosystem is still under-penetrated and this investment marks the final NCD raise of the fiscal year (FY)21 and is in continuation with the series issued in the months of August and December 2020. The NBFC has managed to raise around INR 80 crore this fiscal year.

Prabhjeet Bhatla

Former Staff

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