OYO-backer BlackSoil raises new debt fund of Rs 250 crore

The rise of enterprise debt has been one of many distinguished developments in investing in India during the last 15-18 months, as public fairness markets undergo a ‘funding winter’. BlackSoil, a Mumbai-based various credit score platform, has raised a brand new Rs 250 crore-fund by way of household places of work, notable UHNIs / HNIs, and different marquee establishments. 

“The funds raised can be lent to mid and growth-stage startups, by way of a wide range of debt merchandise,” Ankur Bansal, Director & Co-Founder, BlackSoil, mentioned in a press release. “Regardless of near-term challenges and rising rates of interest, we stand assured in our technique. Our merchandise are offering security of funding together with stabilized returns supported by our proprietary underwriting and resilient credit score efficiency,” he added.

BlackSoil, which has backed unicorns akin to OYO, Udaan, Upstox, Infra.Market, Slice, Spinny, amongst others, has deployed over $300 million throughout 130-plus offers during the last six years. It manages another credit score platform made up of an RBI-registered NBFC and 4 SEBI-registered AIFs. The fund’s common cheque dimension is Rs 15-20 crore. 

BlackSoil’s deployment peaked in FY 2021-22, coinciding with the funding highs of India’s start-up ecosystem. Within the interval, the fund invested $90 million in 30-odd start-ups throughout rising sectors. Within the first quarter of the present monetary yr (FY23), BlackSoil invested $40 million in 6+ offers, and grew its AUM by over 50 per cent year-on-year.  

Information from Enterprise Intelligence reveals that enterprise debt deployment in India has grown 11 per cent year-on-year to $312 million in August 2022. In addition to BlackSoil, different lively debt funds in India embody Alteria Capital, Trifecta Capital, Stride Ventures, InnoVen, Anicut Capital, and extra. 

With fairness funding, particularly in late-stage offers, going by way of a sustained slowdown, debt capital is prone to discover extra favour amongst start-ups. A few of BlackSoil’s different portfolio firms embody Zetwerk, Purplle, BluSmart, Curefoods, AllCargo Logistics, Aviom, and so on.

By way of the brand new fund, it appears to be like to offer obligatory runway to start-ups within the type of working capital options, acquisition financing, and different short-term funding necessities with out diluting their cap-table. The slowdown in enterprise capital and personal fairness has allowed alternate funds to extend their cheque sizes and take part in bigger offers. 

Bansal explains, “The onward lending we can be doing with these funds are by way of merchandise with amortizing & fastened pay-out buildings which considerably scale back enterprise & time threat, and safeguard the funding. This has enabled us to boost this capital even amidst market volatility.”

Over 20 household places of work and high-net price people have invested by way of Blacksoil’s debt merchandise. “Strategic partnerships, acquisitions and expertise addition have bolstered our natural initiatives to increase and deepen our imaginative and prescient to be a sought-after companion to founders, enterprises and buyers,” Bansal acknowledged. 

Earlier in 2022, WSB Actual Property Companions and BlackSoil Group got here collectively to boost a Rs 500-crore residential property debt fund WSB Actual Property Debt Fund II, which appears to be like to put money into residential actual property initiatives for center earnings households and within the reasonably priced housing phase. 

Additionally Learn: Fintech NBFC LivFin raises $2 mn from enterprise debt participant BlackSoil

Additionally Learn: Winter just isn’t coming in early-stage offers: This fund backed 26 start-ups in H1 2022