BlackSoil Capital and Caspian Impact Investments today announced they have received approval from their respective Boards of Directors to merge through a share swap.
After the merger is complete and regulatory approvals are received, Caspian Debt will be fully integrated into BlackSoil, a press release said. This strategic amalgamation will position BlackSoil, the combined entity, as one of the largest players in the alternative credit segment it operates in.
With a combined AUM of over INR 2,000 Crore, the merged company, BlackSoil, will be well-positioned to capitalise on growth opportunities and provide extensive credit solutions to the startup ecosystem, financial institutions and MSMEs in an evolving marketplace, the release said.
The merger will provide a broader client base, enhancing market presence and competitive edge. The combined disbursements of both companies stand at over INR 10,000 Crore across 450+ companies, showcasing significant market presence and expertise, the release said.
Both companies also share a strong commitment to Environmental, Social, and Governance (ESG) principles and impact investing, which will facilitate seamless integration and cultural alignment. Post-merger, BlackSoil will have a geographical footprint across major metro cities like Mumbai, Hyderabad, Delhi, and Bengaluru.
“We are profoundly optimistic about the myriad opportunities this merger presents for our esteemed clients, best in class lenders, dedicated employees and valued shareholders,” affirmed Ankur Bansal, Managing Director and Co-Founder of BlackSoil Capital.
“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.”
“This merger marks a transformative milestone in Caspian Debt’s ongoing commitment to delivering unparalleled credit solutions to our valued clientele,” stated Avishek Gupta, Managing Director & CEO of Caspian Debt.
“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. We are confident that the combined entity will set new benchmarks of excellence and impact within the alternate credit segment.”
The merger is advised by Haitong Securities India Pvt. Ltd. for BlackSoil Capital and BOB Capital Markets Ltd. for Caspian Debt.
Blacksoil Capital, an NBFC which began its lending operations in 2016, has firmly established itself as a pioneer in the alternative credit segment. It provides alternative credit debt to emerging corporates, growth companies and financial institutions, and supply chain finance solutions for Micro, Small and Medium Enterprises (‘MSME’) channel partners.
The credit solutions offered by BlackSoil are designed to help fast-growing, scalable and underserved new economy businesses with their short-term financing needs. The company disbursed an impressive INR 6,200 Crore across 235 investments. BlackSoil Capital recently raised fresh ₹100 Crore equity through a rights issue and is backed by marquee investors and family offices of Allcargo Logistics, Navneet Education, Mahavir Agency and Mathew Cyriac-led Florintree Advisors. BlackSoil is headquartered in Mumbai.
Background of Caspian Debt
Founded in 2013, Caspian Debt NBFC is a leading player in India’s impact investment ecosystem, specialising in providing financial solutions to small and medium enterprises (SMEs). It is backed by the renowned international impact investors, such as FMO, GrayMatters Capital and Triodos Investment Management. Having deployed more than INR 4,000 Crore to over 250 institutions since its inception, the company has built a strong reputation for its deep understanding of the Small Medium Enterprise (‘SME’) segment and its innovative approach to financial inclusion. Caspian Debt is headquartered in Hyderabad.