Two of India’s Non-banking Financial Companies (NBFCs), BlackSoil Capital, an alternative credit provider, and Caspian Impact Investments (Debt), an impact investment lender, on Thursday announced that they have received unanimous approval from their respective Boards of Directors to merge through a share swap.
This decision paves the way for creating a combined entity uniquely positioned to deliver value to various stakeholders such as clients, shareholders, lenders, investors and employees and boost operational efficiencies. After the merger is complete and regulatory approvals are received, Caspian Debt will be fully integrated into BlackSoil.
This strategic amalgamation will position BlackSoil, the combined entity, as one of the largest players in the alternative credit segment it operates in.
With a combined AUM of over Rs 2,000 Crore, the merged company, BlackSoil, will be well-positioned to capitalise on growth opportunities and provide extensive credit solutions to the startup ecosystem, financial institutions and MSMEs in an evolving marketplace.
The merger will provide a broader client base, enhancing market presence and competitive edge. The combined disbursements of both companies stand at over Rs 10,000 crore across 450+ companies, showcasing significant market presence and expertise. Both companies also share a strong commitment to Environmental, Social, and Governance (ESG) principles and impact investing, which will facilitate seamless integration and cultural alignment. Post-merger, BlackSoil will have a geographical footprint across major metro cities like Mumbai, Hyderabad, Delhi, and Bengaluru.
“We are profoundly optimistic about the myriad opportunities this merger presents for our esteemed clients, best in class lenders, dedicated employees and valued shareholders,” Ankur Bansal, Managing Director and Co-Founder of BlackSoil Capital said in a statement. “We will leverage our collective strengths to spearhead transformative innovations and forge a path of sustainable, long-term growth in an ever-evolving marketplace.”
“This merger marks a transformative milestone in Caspian Debt’s commitment to deliver credit solutions to our clientele,” stated Avishek Gupta, Managing Director & CEO of Caspian Debt. “Synergising our core competencies, across diversified asset classes, Caspian and BlackSoil will continue to catalyse innovation and growth and will be market leaders in providing creative credit solutions to high-growth companies and entrepreneurs.”
The merger is advised by Haitong Securities India Pvt. Ltd. for BlackSoil Capital and BOB Capital Markets Ltd. for Caspian Debt.
