BlackSoil funds Rs 80 Cr debt for Mintoak buyout

BlackSoil has provided Rs 80 crore, about $9 million, in acquisition financing to Mumbai-based fintech Mintoak. The debt funds Mintoak’s purchase of ICC Loyalty, a Dubai-based loyalty and rewards technology company serving more than 30 banks across 10 countries. Neither the value of the acquisition nor the terms of the debt have been disclosed.

The financing is the story here. Indian startups have historically bought companies with equity, either by issuing stock or by raising a round to fund the cheque. Mintoak did neither. It borrowed. That option was open because the numbers support it. The company generates over $30 million in annual revenue at an EBITDA margin above 30 percent. A lender underwrites cash flow, and Mintoak has cash flow, so it did not have to dilute or set a fresh valuation to make an acquisition.

BlackSoil is an alternative credit platform running an RBI-registered systemically important NBFC and a SEBI-registered AIF, with $275 million under management and a portfolio spanning 11 unicorns and 14 listed companies. Founded in 2016, the same year as Mintoak, it lends across India and Southeast Asia. Post-acquisition, Mintoak works with more than 50 banks including HDFC Bank, Axis Bank, SBI Payments, Emirates Islamic and Absa Bank across over 20 countries, supporting more than 5 million merchants and 11 million customers, and processing over $93 billion in annual payment volume.

The lesson for a D2C operator is about which door your financials open. A priced equity round is a bet on your story. A credit facility is a verdict on your bank statement. Mintoak’s 30 percent margin is what made Rs 80 crore available without dilution, and no amount of growth narrative substitutes for it. If you are profitable, acquisition debt is now a live route to buying a competitor or a category adjacency. If you are not, it is unavailable at any interest rate.

If you do go looking for it, model the covenant rather than the coupon. The rate is the visible cost and it is negotiable. The covenant is the clause that forces repayment in a quarter when a marketplace shifts its take rate or a season goes soft. Debt stays cheaper than equity right up to the point where a bad quarter turns your lender into your most demanding shareholder.