BlackSoil Capital and Caspian Debt receives RBI's approval for merger

BlackSoil Capital, an alternative credit platform, and Caspian Debt, an impact investment lender, have received approval from the Reserve Bank of India (RBI) for their merger.

This marks a crucial step toward finalising the merger, with only the National Company Law Tribunal (NCLT) approval remaining.

Merger to enhance the ability to support startups

Once completed, the merger will enhance BlackSoil's ability to support startups, MSMEs, and impact-driven enterprises while expanding its financial solutions for underserved businesses that require smaller credit sizes.

"With RBI's approval, we are closer to building a comprehensive alternative credit ecosystem in India," said Ankur Bansal, Managing Director, BlackSoil.

"By integrating Caspian Debt's expertise in impact investing with our innovative financing solutions, we will drive greater financial inclusion and extend our reach to businesses often underserved by traditional lenders."

"Joining forces with BlackSoil allows us to accelerate our mission, leveraging their robust platform and expertise in alternative credit," said S. Viswanatha Prasad, Founder & Chairman of Caspian Debt. "This merger strengthens our ability to provide capital where it is needed the most, ensuring sustainable growth for impact-driven enterprises across India."

With a combined AUM exceeding Rs 2,000 crore and total disbursements surpassing Rs 10,000 crore across 450+ businesses, the merger strengthens BlackSoil's focus on MSME lending and low-ticket-size financing.

BlackSoil will also increase its geographical footprint across major metros, including Mumbai, Hyderabad, Delhi, and Bengaluru, through this merger, the release notes.

What does BlackSoil Capital do?

Established in 2016, BlackSoil Group comprises an RBI-registered systemically important NBFC and an SEBI-registered AIF. It provides flexible credit solutions to growth-stage companies and financial institutions and supply chain financing to MSMEs.

Its portfolio includes high-growth enterprises such as MobiKwik, Ideaforge, Upstox, Bluestone, OYO, Udaan, Zetwerk, Spinny, and Purplle. The firm claims to have disbursed over Rs 7,800 crore across more than 270 companies.

On the other hand, Caspian Debt, which was founded in 2013, has deployed over Rs 4,000 crore to 250+ institutions. It focuses on climate tech, social enterprises, and sustainable businesses. It is backed by international impact investors, including FMO, Gray Matters Capital, and Triodos Investment Management.

The transaction is advised by Haitong Securities India Pvt. Ltd. for BlackSoil and BOB Capital Markets Ltd. for Caspian Debt.