Leading NBFCs Caspian Debt and BlackSoil Capital to merge

The combined disbursements of both companies stand at over Rs 10,000 crore across more than 450 companies

Two of India’s leading Non-banking Financial Companies (NBFCs), BlackSoil Capital and Caspian Impact Investments (Debt) announced on September 4 that they have received unanimous approval from their respective boards of directors to merge through a share swap.

After the merger is complete and all regulatory approvals are received, Caspian Debt will be fully integrated into BlackSoil.

The decision to merge alternative credit provider BlackSoil and impact investment lender Caspian Impact will pave the way for creating a combined entity uniquely positioned to deliver enhanced value to various stakeholders such as clients, shareholders, lenders, investors and employees and boost operational efficiencies, the companies said in a release.

The 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 entity 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 release added.

The combined disbursements of both companies stand at over Rs 10,000 crore across more than 450 companies, meaning, the merger will provide a broader client base, enhancing market presence and competitive edge. Post-merger, BlackSoil will have a geographical footprint across major metro cities like Mumbai, Hyderabad, Delhi, and Bengaluru.

Also, as per the release, both companies share a strong commitment to environmental, social, and governance (ESG) principles and impact investing, which will facilitate seamless integration and cultural alignment.

"We are profoundly optimistic about the myriad opportunities this merger presents for our esteemed clients, best in class lenders, dedicated employees and valued shareholders," said Ankur Bansal, Managing Director and Co-Founder of BlackSoil Capital.

"BlackSoil Capital and Caspian Debt share an unwavering vision of excellence and a steadfast dedication to providing best-in-class credit solutions. 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.

"This merger marks a transformative milestone in Caspian Debt's ongoing commitment to delivering unparalleled credit solutions to our valued clientele," said 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. We are confident that the combined entity will set new benchmarks of excellence and impact within the alternate credit segment," Gupta added.

The merger is advised by Haitong Securities India Pvt Ltd for BlackSoil Capital and BOB Capital Markets Ltd for Caspian Debt.