Blacksoil Capital invests 20 Crs INR in the Mahaveer financing supported by Banyan Tree
BlackSoil is an industry independent alternative credit platform and has deployed 1,100 Crs INR over the past 4.5 years on over 80 transactions.
Chennai based asset finance NBFC “Mahaveer Finance” raises INR 20 Crs bridge capital through structured finance from Mumbai-based Blacksoil Capital (NBFC) ahead of its 100 Crore Series C finance in current year . The funds will be used to achieve its asset under management target of 500 Crs INR for the year.
Founded in 1981, Mahaveer Finance finances used commercial and passenger vehicles through a network of 42 branches spread across 3 southern states and 1 Union territory with dominance in the segment of new buyers / new credit vehicles. . The company has built a strong network of more than 35,000 small road transport operators, dealers, agents and individuals. The low operating cost structure allows them to offer low cost loans (Rs 3-4 lakhs) and serve them efficiently through their branch network. The company has raised over 350 Crs INR of debt from over 26 well-diversified relationships with PSU bank, private banks, AIFs and NBFCs. Recently, the company raised INR 50 Crore of TLTRO funding from its PSU bankers. The company aims to fill the gap in the retail segment of the used commercial vehicle market and first-time buyers / new buyers on credit, where most of the major players in used commercial vehicle financing are ‘addressed to operators of large fleets. All loans are secured, with livelihood financing enabling self-help.
employment / micro-entrepreneurship. The typical loan to value ratio (LTV) is conservative at 70-80%, which ensures that borrowers have a significant equity investment in the vehicle leading to a superior credit score. The company has internal capabilities in place for an end-to-end process, from loan origination to collection. The company claimed to have experienced 48% year-on-year growth from INR 30 Cr in fiscal year 2015 to a current portfolio of ~ INR 300 Crs with over 11,000 active clients.
Mahaveer’s financial promoter Praveen Dugar said, “We wholeheartedly appreciate the quick turnaround time, quick decision making and the caring team at Black Soil who helped us bring this project to a close on time. . The infusion of funds would strengthen the company’s balance sheet and allow us to harness the growth opportunities that continue to emerge in the current market towards our larger target of Rs. 2000 Crore over the next 3 years. This transaction will be a springboard for the next Series-C 100 Cr fundraiser. After our first round by BanyanTree in 2018, we increased the pound from Rs 50 crores to Rs 300 crores and the current round of BlackSoil will help us reach Rs 500 crores ”.
“The company has rigorous credit controls, portfolio monitoring systems and loan collection systems in place, which is reflected in its gross PAD levels, which are comparable to industry benchmarks. The company has also shown strong resilience during the Covid period while addressing the customer segment that has been among the most affected due to the foreclosure restrictions. Based on this, we strongly believe in their business model and scalability. We look forward to helping them develop their portfolio and expand their presence, ”said Ankur Bansal, co-founder of Blacksoil Capital.
BlackSoil is an industry independent alternative credit platform and has deployed 1,100 Crs INR over the past 4.5 years on over 80 transactions. Blacksoil’s past deals include OYO, Spinny, Purplle, Zetwerks, Vogo, LetsTransport, EarlySalary, and iNurture, among others. Blacksoil recently raised INR 126 crore for the first close of its first secured credit fund.