BlackSoil Capital and Caspian Debt Secure RBI Nod for Merger

Both BlackSoil Capital and Caspian Debt have secured approval for their merger from the Reserve Bank of India (RBI). This is a significant step following their respective board approvals. The merger now requires the final sanction of the National Company Law Tribunal (NCLT).

The merged entity will have an AUM of over INR 2,000 Cr. The combined entities have financed over INR 10,000 Cr across more than 450 startups, MSMEs, and companies. This highlights the scale and experience the new entity will possess.

The merger aims to create a “larger alternative credit platform” in India by combining the strengths of both organisations:

BlackSoil: Customised alternative credit solutions to growth companies, financial institutions, NBFCs and MSMEs across diverse sectors.

Caspian Debt: Specialises in providing financial solutions to small and medium enterprises (SMEs).

Ankur Bansal, BlackSoil’s managing director, stated: “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.”

S. Viswanatha Prasad, Founder & Chairman of Caspian Debt, echoed this sentiment: “Joining forces with BlackSoil lets us accelerate our mission by leveraging their robust platform and expertise in alternative credit. This merger strengthens our ability to provide capital where businesses need it most.”

While both operate in the alternative credit space, they have distinct focuses. The combined entity will strengthen its focus on MSME lending and low-ticket-size financing, leveraging Caspian Debt’s existing expertise in this segment. 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.

Post-merger, BlackSoil will expand its geographical presence across major metros like Mumbai, Hyderabad, Delhi and Bengaluru.

BlackSoil, established in 2016, has a larger credit disbursal volume, with a corpus of INR 7,800 crore across more than 270 companies. Its portfolio includes well-known startups like MobiKwik, Ideaforge, Upstox, OYO, Udaan, Zetwerk, Spinny, and Purplle. They are backed by family offices of prominent groups.

Caspian Debt, founded earlier in 2013, has deployed over INR 4,000 crore across more than 250 institutions, focusing on impact-driven sectors. Their backers include international impact investors like FMO, Gray Matters Capital, and Triodos Investment Management.