SME-Focused NBFC BlackSoil Capital Raises Rs 210 Crore Debt in H1 2025

Alternative debt provider for growing businesses BlackSoil Capital on Tuesday said it has raised Rs 210 crore debt in the first half of 2025 (January-June). The non-banking financial company (NBFC) focusing on small and medium enterprises (SMEs) and high-growth businesses raised majority of its latest capital through non-convertible debentures (NCDs) and co-investments from marquee family offices and high net-worth individuals (HNIs). 

New lenders included global impact investor GrayMatters Capital and a public sector financial institution, alongside repeat participation from three existing lenders, BlackSoil said.

The latest capital infusion will fuel BlackSoil’s SME-focused sector-agnostic lending strategy, with SMEs forming 80 per cent of its portfolio across agritech, climate-tech, EVs, SaaS, healthcare, fintech, and B2B platforms.

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“This fundraise reinforces BlackSoil’s differentiated position in India’s alternative credit landscape. The demand for non-dilutive, flexible capital is accelerating, particularly from SMEs that form the backbone of India’s economy. With the upcoming merger with Caspian Debt and the growing scale of SaralSCF, we are doubling down on enabling SMEs to scale sustainably while retaining ownership,” said Chirag Shah, President - Fundraising & Strategy, BlackSoil.

BlackSoil Capital is currently awaiting approval from the National Company Law Tribunal (NCLT) for its merger with impact investment player Caspian Debt. Once approved, the combined entity will create an alternative credit platform for SME lending.

The company’s portfolio includes 10 unicorns and eight publicly listed entities. In the enterprise segment, it includes Yatra.com, ideaForge, BlueStone, MobiKwik, Curefoods, Battery Smart, Jumbotail, and Moneyview. In the SME segment, the portfolio includes Cellecor Gadgets, Manba Finance, Dar Capital, Parag Milk, etc.

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For small merchants who are unable to secure bank credit on regular terms, alternative lending is fast turning into a key source of capital by assessing creditworthiness based on non-traditional sources of data and advanced analytics. 

Further, the rapid embrace of digital payments by all segments has led to an increase in digital data points that these non-traditional lenders use to assess credit risk, further widening the scope for alternative lending in the market.

Alternative lending in India is expected to grow by 26.3 per cent on an annual basis from $7.53 billion in 2023 to $18.24 billion by 2028, as per a report by the Fintech Association for Consumer Empowerment earlier this year.