BlackSoil Capital raises Rs 200 Cr from Danish DFI Impact Fund

Alternative credit platform BlackSoil Capital has raised Rs 200 crore in debt funding from the Danish development finance institution Impact Fund Denmark.

The Danish fund invests in developing and emerging markets to promote green societies, and provides capital to businesses aligned with development outcomes and the UN Sustainable Development Goals.

BlackSoil Capital will use the funding to support climate adaptation and mitigation initiatives as well as expand access to credit for low-income communities and under-served segments of the economy.

A significant portion of the capital will also be used to support climate-aligned enterprises and financial institutions operating in Tier II and III markets, with a focus on women-led businesses in under-served sectors.

“There is a significant credit gap for climate-focused enterprises and inclusive lenders. This partnership strengthens our ability to scale across domestic markets, support MSMEs and new-economy companies, and deploy capital aligned with India’s climate and inclusion priorities,” said Ankur Bansal, Managing Director, BlackSoil Capital. 

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The funding is expected to enable BlackSoil to increase its exposure to renewable energy adoption, climate-smart agriculture, sustainable supply chains, circular economy solutions, and inclusive finance models, the company said.

“Green growth requires capital. With this investment, we are helping companies in India access the financing they need to grow and bring more green businesses to market,” said Lars Bo Bertram, CEO, Impact Fund Denmark.

Set up in 2016, BlackSoil has assets under management worth $250 million. It provides alternative credit and supply chains financing solutions to growing and new economy business across short- and long-term capital needs. Its portfolio comprises 11 unicorns and 14 public-listed companies.