Funding · Financial Services

BlackSoil raises ₹200 crore debt for climate lending

By Startup Enthusiast · 18 March 2026

What they do

BlackSoil Capital provides debt financing to Indian MSMEs, focusing on the 'missing middle' segment

It raised ₹200 crore (~$22 million) in debt from Impact Fund Denmark, a Danish development finance institution

The funds will support climate-aligned lending, including renewable energy and women-led businesses in smaller cities

BlackSoil Capital raised ₹200 crore (~$22 million) in debt from Impact Fund Denmark, a Danish development finance institution.
The debt will be used for climate-aligned lending and financial inclusion in India's MSME (micro, small and medium enterprises) landscape.
Funds will target renewable energy, climate-smart agriculture, circular economy, and sustainable supply chains.
The capital will also support women-led businesses and underserved communities in Tier 2 and Tier 3 cities.
BlackSoil focuses on India's 'missing middle' enterprises—smaller firms that often struggle to get bank loans.
Impact Fund Denmark backs ventures aligned with the UN Sustainable Development Goals (SDGs).

This debt round strengthens BlackSoil's ability to lend to climate-focused MSMEs, a segment with growing demand.
Impact Fund Denmark's involvement signals international interest in India's climate finance and financial inclusion space.
The focus on Tier 2 and Tier 3 cities highlights a push to reach underserved markets.

BlackSoil Capital provides debt financing to Indian MSMEs, particularly those in the 'missing middle'—companies too large for microfinance but too small for traditional bank credit.
It operates in the financial services sector, offering alternative credit solutions.
The company targets sectors like renewable energy, climate-smart agriculture, and sustainable supply chains.
It aims to support women-led businesses and communities in smaller cities.

Deploy the funds in climate-aligned lending and financial inclusion initiatives.
Expand lending to renewable energy, climate-smart agriculture, and sustainable supply chains.
Reach more women-led businesses and underserved communities in Tier 2 and Tier 3 cities.

Impact Fund Denmark (lead) — Danish development finance institution that provides debt to ventures aligned with UN SDGs.