Impact Fund Denmark is investing DKK 145 million in the Indian financing company BlackSoil Capital. The investment will strengthen access to capital for green startups and small businesses in one of the world’s most important growth markets, while also contributing to more inclusive development.
In India, lack of access to financing remains one of the biggest barriers preventing small businesses and startups from growing. The country’s micro, small and medium-sized enterprise sector accounts for around 30 percent of GDP, 40 percent of exports, and 60 percent of the workforce. Yet many still struggle to obtain loans from traditional banks, where requirements are often high and risk appetite is low.
BlackSoil provides alternative financing to startups, small businesses, and financial companies in India.
BlackSoil’s focus on small and medium-sized enterprises and startups is critical in a sector that represents such a large share of both the workforce and the Indian economy. The investment will not only help strengthen individual businesses, but also support growth, job creation, and future development in India.
At least 75 per cent of Impact Fund Denmark’s investment will go to climate-related businesses. These may include companies working in green energy, electric mobility, crop insurance, and more climate-resilient agricultural practices. The investment will thus help accelerate solutions that contribute to reducing the consequences of climate change.
The remaining share of the investment will support more inclusive development and better economic opportunities for lower-income populations. This may include increasing access to financing for women-led businesses and companies with a high share of female employees.
External Communications Director
Thøger Kirk
+45 53 76 08 05
