Credit Fair Sold for $5.4M After Valuation Drop from $21.6M

Venture debt firm BlackSoil has acquired the rooftop solar loans provider Credit Fair in a slump sale, according to a disclosure made by ICRA. 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 approximately $5.4 million.

Credit Fair had raised over $30 million in debt and equity since its inception in 2018. The company was last valued at around $21.6 million.

Founder Aditya Damani stated that the decision to pursue an acquisition came after multiple failed attempts to raise equity and debt. He attributed the sale not to concerns about the portfolio's quality, but to a challenging funding environment for non-banking financial companies (NBFCs) with assets under management below $36 million. Increased compliance costs due to tightened regulations and difficulty in raising capital for smaller NBFCs prompted the move to become part of a larger institution.

The deal includes Credit Fair's solar financing business, management team, tech platform, brand, and operational infrastructure. For the fiscal year 2026, Damani reported total revenue of approximately $3.8 million, with a loss of around $0.7 million.

For BlackSoil, the acquisition aims to expand its retail lending portfolio and strengthen its presence in climate-focused financing. It also grants BlackSoil entry into the rooftop solar financing segment, where Credit Fair has established partnerships with major companies like Tata Power and Adani Solar. Since its inception, Credit Fair has processed over 350,000 loans and disbursed more than $156 million across more than 20 states.