BlackSoil Capital, an alternative credit platform, has raised nearly $22 million (Rs 200 crore) in debt funding from Impact Fund Denmark, the Danish development finance institution.
The debt facility will primarily support climate adaptation and mitigation initiatives, while expanding access to credit for low-income communities and underserved segments of the economy, BlackSoil said in a statement.
A significant portion of the capital will be directed towards climate-aligned enterprises and financial institutions operating especially in Tier-2 and Tier-3 markets, with a focus on women-led businesses in structurally underserved sectors, it added.
“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.
The funding comes close on the heels of BlackSoil announcing that it has deployed Rs 75 crore ($8.1 million) in commercial EV vehicle maker Euler Motors, which specialises in three-wheeler EVs. The round was led by BlackSoil along with participation from several other investors, following the company’s Series D raise in May 2025. Euler, which is backed by institutional investors including Hero Motors, GIC, and British International Investment (BII), will use the funding to meet its working capital requirements, infrastructure expansion, and electrification.
Established in 2016, BlackSoil is an RBI-registered NBFC and a SEBI-registered AIF. With assets under management (AUM) of $250 million, BlackSoil provides alternative credit and supply chain financing solutions to MSMEs, emerging corporates, and financial institutions across India and Southeast Asian markets. Its portfolio includes eleven unicorns and fourteen publicly listed companies.
Other investors in BlackSoil include global DFIs and institutional investors, including FMO, Gray Matters Capital, and Triodos Investment Management, along with the family offices of Allcargo Logistics, Navneet Education, and Mahavir Agency.
Meanwhile, Impact Fund Denmark invests in developing and emerging markets to promote green, just and inclusive societies. It provides capital to businesses aligned with measurable development outcomes and the UN Sustainable Development Goals.
“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,” says Lars Bo Bertram, CEO, Impact Fund Denmark.
