Once Valued At ₹180 Cr, Why Credit Fair Sold For ₹45 Cr

Venture debt firm BlackSoil has acquired rooftop solar loans provider Credit Fair in a slump sale. The transaction, completed on July 1 via a cash slump sale, saw BlackSoil acquire Credit Fair’s solar financing business for a net consideration of about ₹45 Cr, according to a disclosure made by ICRA. 

Credit Fair had raised over $30 Mn in debt and equity since inception in 2018 from the likes of British International Investment, Symbiotics Group, State Bank of India and Northern Arc. However, the equity portion remained significantly smaller at ₹48 Cr.  

It was last valued at around ₹180 Cr. 

What Led To The Distress Sale?

Since inception, Credit Fair has been offering point-of-sale financing and affordable rooftop solar loans. It lets users split purchases into easy EMIs, with approvals taking as little as two minutes. It offers customised loans ranging from ₹10,000 to ₹20 Lakhs with flexible tenures of 3 to 36 months, no collateral, and zero foreclosure charges.

The lending business had assets under management (AUM) of about ₹160 Cr as of March 31, 2026.

Speaking with Inc42, founder Aditya Damani said Credit Fair’s decision to go for an acquisition came after multiple failed attempts at raising equity and debt. As per him, the deal was not driven by concerns around Credit Fair’s portfolio quality. According to him, the funding environment has become particularly difficult for NBFCs with assets under management below ₹300 Cr.

“Compliance costs have gone up significantly as the RBI has tightened regulations. Raising capital has also become much harder for smaller NBFCs. We felt becoming part of a larger institution was the right way to continue growing,” Damani said.

He believes there has been a slowdown in debt and equity funding for smaller NBFCs due to macro economic conditions and tighter RBI regulations. In the current climate, investors are leaning more towards backing better rated NBFCs with larger balances.

The deal brings Credit Fair’s solar financing business, management team, tech platform, brand and operating infrastructure under BlackSoil. On the financial front, Damani claimed that the NBFC’s total revenue for the fiscal year FY26 stood at ₹32 Cr, while loss stood at around ₹6 Cr.

What’s In It For BlackSoil?

For BlackSoil, the acquisition serves a different purpose. Credit Fair’s acquisition will help it expand its retail lending portfolio while also strengthening its presence in climate-focused financing.

The venture debt firm, which has been one of the most active startup investors, has largely built its business around venture lending, with average ticket sizes of ₹5 Cr to ₹10 Cr. Credit Fair, on the other hand, lends about ₹3 Lakh on average to rooftop solar customers.

“The acquisition makes BlackSoil’s loan book more granular. Instead of lending to a few hundred borrowers, the debt firm can now offer loans to about 1 Lakh borrowers,” Damani said.

As per ICRA, BlackSoil is yet to establish expertise in rooftop solar financing, making the performance of the acquired portfolio a key monitorable.

The acquisition also gives BlackSoil an entry into rooftop solar financing, a segment where Credit Fair has built partnerships with companies such as Tata Power, Waaree, SolarSquare and Adani Solar. Since its inception in 2018, the company has processed more than 3.5 lakh loans and disbursed over ₹1,300 Cr across more than 20 states.

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