BlackSoil Crosses $300M in Venture Debt Deals, Predicts Robust Market
BlackSoil, which provides debt capital, said Thursday it crossed $300 million in venture capital deals that are helping more than 100 companies grow their business.
BlackSoil said it invested $40 million in more than six deals in the first quarter of FY23, posting the highest-ever year-over-year growth despite broader cyclical volatility and the impact of Covid-19.
“We have invested in 2 unicorns this very quarter. Our AUM [assets under management] increased by 55% year-on-year. In addition, the growth of portfolio companies resulted in 7 successful full exits during the quarter, which speaks to the quality of our underwriting. Our beneficiary companies have raised $7 billion through equity since inception, including $1.5 billion in FY22 itself,” the company said in a press release.
With a bearish trend in capital markets, cash is scarce for startups. Equity investors are operating cautiously as the pace of successful trades and exits slows. As start-ups seek capital and investors consider safer routes, venture debt providers are rapidly emerging as the preferred partners of both groups. In 2022, many late-stage startups are witnessing partnerships with debt capital providers.
“We remain bullish on venture capital debt as the ideal alternative to equities in the current market scenario. Therefore, the market positioning, the robustness of the underlying business model, the cash-conservative nature of the companies, positive unit metrics and longer leads are some of the key metrics we currently assess before taking a bet, regardless of the industry they operate in,” said Ankur Bansal, Co-Founder and Director of Black Soil.
BlackSoil operates an alternative credit platform comprising of an RBI registered NBFC as well as a SEBI registered Alternative Investment Fund/Fund. Through multiple platforms, he has built a loan portfolio by deploying $300m across 130 deals and having an AUM of over $100m.
Some of BlackSoil’s investments include nine unicorns – Upstox, Slice, Mobikwik, Udaan, Infra.Market, Zetwerk, OYO Rooms, Spinny and Purplle – as well as other leading companies such as leading cloud cooking company and Curefoods , a pioneer in ‘buy now, pay later’.