Venture debt and alternative credit platform, BlackSoil Capital, Thursday said it has invested more than $40 million in six deals over the first quarter of FY23.
“BlackSoil invested $40 million 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 rising and fall in COVID numbers,” the company said in a press release.
BlackSoil also noted that its venture debt deals have crossed the $300 million landmark. The investor has so far backed more than 100 startups and growth companies, and claims that is has gained a market share in the high teens in the Indian venture debt space in the last six years. It credits its proprietary underwriting and structuring capability for its growth.
Founded in 2016, Blacksoil is a sector agnostic debt investor which backs new-age, digital-first companies. So far, it has invested in 9 unicorns, and numerous "soonincorns", or potential unicorns.
“We invested in two unicorns in this quarter itself. Our assets under management (AUM) have grown 55% Y-o-Y. Besides, growth across portfolio companies has resulted in seven successful complete exits during the quarter, as a testament to our underwriting quality. Our investee companies have raised $7+ billion via equity since inception including $1.5 Bn in FY22 itself,” it added.
VCCircle earlier reported that Indian companies are relying more on venture debt amid the bearish trend prevailing in capital markets. With high cash-burning companies not able to crack deals with equity investors operating with extra caution, many are now seeking refuge in the debt ecosystem to stay afloat and fuel their growth.
“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, the 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,” said Ankur Bansal, co-founder and director of BlackSoil.