BlackSoil, a Mumbai-based alternative credit platform, invests in innovative companies that are fulfilling a demand gap with high-quality niche products/services, creating new economy businesses. In FY23, BlackSoil witnessed noteworthy progress, with investments increasing by over 55% compared to the previous year (FY22), amounting to around $90 Mn across almost 40 deals. Furthermore, during the year, BlackSoil achieved over 15 successful exits.
Due to the slowdown in the pace of deployments by global and domestic PE/VC funds, startups are currently facing a funding crunch, but BlackSoil has been able to meet this gap through venture debt and has seen a 1.5x increase in deal flow. The firm has carefully cherry picked each of its deals. Through its prudent and adaptable approach, the company achieved impressive growth in investment and collection figures in Q4FY23, with a growth of over 45% in investments and over 65% in repayments compared to the corresponding period in the previous year. This success can be attributed to the firm's selective approach in cherry-picking only high-quality deals.
In the face of global challenges, the Indian startup ecosystem exhibited remarkable resilience and flexibility during FY23. Despite encountering funding constraints, the industry demonstrated a promising ability to persist and adapt, suggesting potential for further expansion in the future.
“Our team’s ability to identify and invest in promising businesses and sectors, coupled with our focus on building long-term relationships with our clients, has helped the company to maintain a robust growth trajectory even in a challenging economic environment,” says Ankur Bansal, Co-Founder & Director of BlackSoil.
The success of BlackSoil's investee companies is a testament to their determination and hard work, having raised $8+ bn via equity as of March 2023. Appreciably, the portfolio managed to raise $500+ Mn in FY23 despite the ongoing funding winter. This impressive achievement reflects the confidence that investors have in these companies and their potential for growth.
“Our commitment towards supporting resilient entrepreneurs and investing in companies with potential for advancement has paid off, resulting in significant investments as well as successful exits,” says Ankur.
BlackSoil's commitment to providing dependable and efficient alternative financing solutions to the Indian startup and growth companies ecosystem is reflected in this positive outlook. The company plans to maintain this strategy in the upcoming fiscal year.
