New-age, sector-agnostic, alternative credit platform, BlackSoil has raised ₹70 Crore through non-convertible debentures (NCDs) for its NBFC. These NCDs are longer tenure products raised from UHNIs, HNIs & Family Offices, of which 65% were repeat investors. The capital raised through the latest fundraise will be deployed predominantly for lending activities, across a variety of debt products, to fund mid and growth-stage enterprises in the startup ecosystem. The NBFC aims to fund around 25 startups from sectors such as Deep Tech, B2B Tech, Enterprise SaaS, FinTech, HealthTech, EdTech, Clean Energy, & D2C/B2C E-Commerce.
The pandemic has transformed the venture debt space in India, in terms of both the number of venture debt deals and the average deal value. H1-2021 saw nearly $170 Mn worth of venture debt deals compared to $55 Mn in H2-2020 and $64 Mn in H1-2020. Due to the venture capital boom that we are witnessing, more and more startups are raising venture debt on the back of large equity rounds, which is enabling them to secure sizeable cheques to meet their working capital requirements.
“At BlackSoil, we have closed 4x the number of deals in the first half of 2021, as compared to the same period last year. We are seeing exponential deal flow in H2-2021 as well. Our latest round of NCD fundraise shall further facilitate us in meeting the growth requirements that startups are facing and wish to combat that through means of venture debt, which in turn would augment our portfolio.” said Ankur Bansal, Director and Co-founder of BlackSoil Capital.
The NBFC has established a network of more than 300 high net-worth families and corporates, who have shown support by subscribing to multiple NCD issuances by the company over the past few years. In numerical terms, the NBFC’s unique NCD program has enabled it to raise ₹360 Crore across multiple series, of which more than 30% of the capital has been repaid over time. The company has managed to reduce its cost of capital by 200 basis points in the past 2 years supported by an improving credit profile, which has enabled them to quickly raise funds at competitive rates.
This marks the final capital raise via NCDs in calendar year 2021 for the NBFC, which has managed securing ₹100 Crore from 100+ UHNIs, HNIs & Family Offices, during this period.
About BlackSoil Capital:
BlackSoil Capital is an RBI-registered, non-deposit taking NBFC that predominantly operates in the venture debt space. Till date, it has deployed ₹1,500+ Cr across 100+ deals and 65% of the capital has been returned which has further been redeployed. Some of BlackSoil’s noteworthy investments include recently turned unicorns – Infra.Market, Zetwerk & Spinny, B2B unicorn – Udaan, IPO-bound unicorn – OYO Rooms, and online marketplace for cosmetics – Purplle amongst others.
Categories: Specialized Funds