BlackSoil, a full-stack debt capital provider, has crossed a milestone of $300 Mn in venture debt deals, enabling over 100+ unique startups & growth companies across several sectors to build their unique businesses. In the last six years, BlackSoil has gained a market share in the high teens in the Indian venture debt space, aided by its proprietary underwriting and structuring capability.
“BlackSoil invested $40 Mn in over 6 deals in Q1FY23, posting the highest ever year-on-year (YoY) growth of 4x times, despite the broader cyclical volatility, and uncertainty associated with rise and fall in COVID numbers. We invested in 2 unicorns in this quarter itself. Our AUM has grown 55% Y-o-Y. Besides, growth across portfolio companies has resulted in 7 successful complete exits during the quarter, as a testament to our underwriting quality. Our investee companies have raised $7+ Bn via equity since inception including $1.5 Bn in FY22 itself,” the company said in a press release.
With a general bearish trend currently prevailing in capital markets, cash has been in short supply for startups. Equity investors are operating with extra caution as the pace of deals as well as successful exits have slowed down in recent months. However, as startups’ quest for capital and investors’ hunt for safer investment avenues continue, Venture Debt providers like BlackSoil are quickly emerging as the preferred partners for both these groups. In 2022, many late-stage startups are witnessed partnering with debt capital providers.
“Given the current subdued market scenario, in the short-term funding on the equity side is likely to diminish significantly across sectors. We continue to remain bullish on Venture Debt as the ideal alternative to equity in the current market scenario. Hence, market positioning, robustness of the underlying business model, cash conservative nature of businesses, positive unit metrics and longer runways are some of the key metrics we are currently evaluating before we are taking a bet, irrespective of the sector they operate in,” saidAnkur Bansal, Co- Founder & Director of BlackSoil.
Since 2016, Blacksoil, through its intrinsically developed credit underwriting philosophy has built a track-record of truly sector agnostic – new-age, digital-first companies who are leaders in the sectors in which they operate.
BlackSoil has invested in 9 unicorns, and numerous soonincorns. At a time when startups are facing a funding crunch or possible delays in raising equity capital, BlackSoil is enabling some of these startups to circumvent this problem by providing growth capital regardless of their being at an early-stage or late stage.
BlackSoil currently manages an alternative credit platform consisting of an RBI-registered NBFC as well as SEBI-registered AIF / Fund. Through the multiple platforms, it has built a quality loan book by deploying $300+ Mn across 130 deals and having an AUM of $100+ Mn. Some of BlackSoil’s noteworthy investments include 9 unicorns – Upstox, Slice, Mobikwik, Udaan, Infra.Market, Zetwerk, OYO Rooms, Spinny & Purplle along with other prominent companies such as leading roll-up play cloud kitchen company – Curefoods, a pioneer in BNPL segment – Zestmoney, the rapidly growing EV ride-hailing space – Blu-Smart, amongst others.
Among one of the active alternate credit solution providers, Blacksoil provides comprehensive solutions, beyond venture, asset backed debt, to cater to the challenges faced by high-growth and inherently strong businesses, backed by leading venture capitals. In addition to above, the platform is targeted to provide debt solution to profitable companies and focus on niche business models and has created diversified and granular portfolio so as it mitigant any possible single company risk/default.
BlackSoil’s funding support to startups covers a wide spectrum of sectors, ranging from traditional businesses operating in financial services, manufacturing and industrial applications, to new-age, tech-backed sectors such as consumer internet, fintech, healthtech, deeptech, IoT, edtech, e-mobility and logistics, among others.
The company is backed by marquee family offices with combined market cap >$2bn of Shashi Kiran Shetty, Chairman of AllCargo Logistics Gnanesh D Gala, Managing Director of Navneet Education, Mathew Cyriac, ex-Blackstone India MD & Founder of Florintree Advisors – an alternative investment firm that has made investments in MTAR Technologies Gokaldas Exports, Data Patterns etc. & Mr Virendra Gala, Founder of Mahavir Realty.