BlackSoil Capital Secures ₹65 Crore from FMO and Caspian Founder to Boost MSME Lending and Alternative Credit Growth

BlackSoil Capital, one of the leading alternative credit NBFCs, today announced an equity infusion of INR 65 Crore from FMO, the Dutch entrepreneurial development bank, and Caspian Founder, S. Viswanatha Prasad. 

The capital raised will be deployed to strengthen BlackSoil Capital’s capital base and support the expansion of its lending portfolio. It will enable the Company to finance a larger number of priority sector businesses and new-economy enterprises, including in climate and agritech, fuelling its next phase of scale-up.

This investment follows the recently completed merger of BlackSoil Capital and Caspian Debt, creating an ~INR 2,000 Crore institution focused on MSME financing and responsible investing under the unified brand, BlackSoil Capital Private Limited. The Company has cumulatively disbursed nearly INR 14,000 Crore across more than 550 companies. It is now well positioned to support a wide spectrum of borrowers, from early-stage enterprises and growth-stage businesses to mid-market corporates, through a diversified and well-governed credit portfolio.

With this equity round, BlackSoil Capital further consolidates its position as a specialised, institution-grade lender. FMO, previously an investor in Caspian Debt, has now transitioned its shareholding to BlackSoil Capital following the merger, signalling continued confidence in BlackSoil’s long-term strategy and governance framework.

“The last few years have brought a period of transition for many NBFCs, marked by evolving liquidity conditions, heightened governance expectations, and a stronger market preference for quality,” said Ankur Bansal, Managing Director, BlackSoil Capital. “Against this backdrop, FMO’s continued support is a strong endorsement of our disciplined lending approach. This infusion enables us to expand credit access to MSMEs and other underserved segments, while maintaining the conservative risk culture that both BlackSoil and Caspian are known for.”

This support aligns with FMO’s long-standing commitment to backing responsible credit institutions.

“FMO has partnered with Caspian for many years in building a responsible, impact-oriented lending franchise,” said Aditya Mohan, Senior Investment Officer - Private Equity, FMO. “Transitioning our investment to BlackSoil Capital after the merger allows us to back a stronger, scaled NBFC. With this equity infusion, we aim to support the Company in extending responsible credit to more MSMEs and impact-driven businesses in India, while maintaining a robust capital position and prudent risk management.”

S. Viswanatha Prasad, Non-Executive Director, BlackSoil Capital and Founder, Caspian said, “We wanted our portfolio, people and investors to be part of a company that could take our thesis deeper into the market, while staying true to our principles. FMO’s decision to continue as a shareholder in the merged entity is a strong endorsement of that continuity. With BlackSoil, we now combine size, sectoral depth and strong governance to push responsible credit further into under-served segments, from small businesses to climate and agritech, while staying commercially disciplined.”