'Debt now a strategic growth layer for mature startups'

BlackSoil Capital, a non-banking financial company (NBFC) arm of BlackSoil Group, raised ₹210 crore debt in the first half of the current calendar year. Most of this capital will go towards working capital or expansion financing, says Ankur Bansal, MD, BlackSoil, in an interview with S Shanthi.

- @ ANKUR BANSAL, MD, BLACKSOIL

The firm also plans to expand its SME lending capabilities through a strategic merger with impact investment lender Caspian Debt. Excerpts:

You raised ₹210 crore in debt in the first half the current calendar year. How were the funds mobilised?

We raised the capital through a mix of NCDs (nonconvertible debentures) and co-investments from longstanding supporters like family offices and HNIs (high networth individuals), as well as new institutional lenders, including a public sector financial institution and Gray Matters Capital. A large part of our book is in growth-stage, mid-market, profitable SMEs, and the fresh capital will be used to expand the same. This capital raise is for our NBFC, BlackSoil Capital. Separately, we are also in the market with our second credit fund, BICFII, which is progressing well.

How much of the current fund has been deployed so far? Can you explain a bit more about the fund allocation?