Alternative credit providers BlackSoil Capital and Caspian Impact Investments (Debt) have received an approval from their boards of directors to merge in a share swap deal.
Caspian Debt will be fully integrated with BlackSoil once the merger is complete and regulatory approvals are received, according to a press release.
With a combined asset base of over Rs 2,000 crore, the strategic amalgamation will position BlackSoil as one of the largest players in the alternative credit segment.
According to the release, the merger will provide the company with a broader client base, enhanced market presence and competitive edge.
The combined disbursements of both companies stand at over Rs 10,000 crore across over 450 companies. The company will also have a geographical footprint across major metro cities like Mumbai, Hyderabad, Delhi and Bengaluru.
"Both companies share a strong commitment to environmental, social, and governance (ESG) principles and impact investing, which will facilitate integration and cultural alignment," the release said.
Since launching operations in 2016, the Mumbai-based BlackSoil Capital provides alternative credit debt to emerging corporates, growth companies and financial institutions and supply chain finance solutions for micro, small and medium enterprise (MSME) channel partners. The company has disbursed Rs 6,200 crore across 235 investments.
Recently, BlackSoil Capital raised a fresh equity of Rs 100 crore through a rights issue and is backed by marquee investors and family offices of Allcargo Logistics, Navneet Education, Mahavir Agency and Mathew Cyriac-led Florintree Advisors.
On the other hand, Hyderabad-based Caspian Debt specialises in providing financial solutions to small and medium enterprises. It is backed by international impact investors, such as FMO, GrayMatters Capital and Triodos Investment Management. The company has deployed over Rs 4,000 crore to around 250 institutions since its inception in 2013.
“BlackSoil Capital and Caspian Debt share an unwavering vision of excellence and a steadfast dedication to providing best-in-class credit solutions,” Ankur Bansal, managing director and co-founder of BlackSoil Capital said.
"United, we will leverage our collective strengths to spearhead transformative innovations and forge a path of sustainable, long-term growth in an ever-evolving marketplace," he added.
Similarly, Caspian Debt managing director and chief executive officer Avishek Gupta feels that the combined entity will set new benchmarks of excellence and impact within the alternate credit segment.
The merger is advised by Haitong Securities India for BlackSoil Capital and BOB Capital Markets for Caspian Debt.
