BlackSoil Capital and Caspian Debt Merger Secured by RBI Approval

BlackSoil Capital and Caspian Debt have received the go-ahead from the Reserve Bank of India (RBI) for their merger, bringing them closer to establishing a more extensive alternative credit platform. The unified entity is set to manage assets exceeding INR 2,000 crore and has disbursed more than Rs 10,000 crore to over 450 businesses. This merger is aimed at enhancing BlackSoil’s footprint in low-ticket-size financing while bolstering its presence in key Indian metros such as Mumbai, Hyderabad, Delhi, and Bengaluru.

Building a Comprehensive Alternative Credit Ecosystem

With the RBI’s backing, BlackSoil is on the path to creating a comprehensive alternative credit ecosystem in India. Ankur Bansal, Managing Director of BlackSoil, mentioned that integrating Caspian Debt’s strengths in impact investing with BlackSoil’s innovative financing solutions will significantly enhance financial inclusion.

Accelerating Impact with Strategic Partnership

S. Viswanatha Prasad, Founder & Chairman of Caspian Debt, expressed that partnering with BlackSoil will allow them to accelerate their mission by utilizing BlackSoil’s robust platform and expertise in alternative credit. He noted that this merger amplifies their capability to deliver capital to businesses that require it most.

Background of the Two Organizations

Established in 2016, BlackSoil operates as a Non-Banking Financial Company (NBFC) registered with the RBI and as an Alternative Investment Fund (AIF) registered with SEBI. Notable firms in their portfolio include MobiKwik, OYO, and Udaan. Caspian Debt, which began its journey in 2013, has invested over Rs 4,000 crore in climate technology and social enterprises, with support from international investors like FMO and Triodos.

Advisory for the Transaction

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