Efficient Capital Labs (ECL), a FinTech organisation providing non-dilutive capital to B2B SaaS enterprises operating along the South Asia-U.S. axis, recently secured a significant $7m in a Pre-Series A round.
The funds were raised through an investment round helmed by QED Investors. Notable participants included existing investors 645 Ventures, The Fund, Lorimer Ventures, and Riverside Ventures. In addition, Generalist also emerged as a new investor alongside QED in this funding round. The raise marks ECL’s second such event within a year.
ECL’s business model is centred around providing B2B SaaS firms a proportion of their ARR as immediate, 100% non-dilutive capital. This method allows ECL to fund customers directly from its balance sheet, offering them cost-effective access to capital, and reducing the uncertainty associated with dependence on third-party investors or marketplace dynamics for revenue capital.
The $7m funding, in conjunction with a previous $100m debt facility, brings ECL’s total capital raised to a staggering $110.5m. The company plans to utilise this fresh injection of capital to bolster its automation capabilities, expand its team across several key departments, and improve overall unit economics.
Kaustav Das and Manish Arora co-founded ECL in 2022. Both founders have extensive industry experience, with Das having held the position of chief risk officer at various organisations, including Kabbage (now part of American Express). Arora, on the other hand, has held senior leadership roles in B2B SaaS, FinTech and RegTech spaces, most recently as the general manager, South Asia for PayJoy.
ECL’s co-founder Kaustav Das elaborated on the company’s mission, saying, “Our vision is to enable border-agnostic access to capital for businesses in emerging markets, such as India, that can benefit from lower capital costs that are available in markets such as the U.S.”
Expressing gratitude for the investors’ trust, Das added, “Our value proposition is unmatched, we offer the most capital- and time-efficient solution for SaaS businesses looking to raise growth capital. The latest fundraise allows us to continue innovating for the customers who we serve.”
Previously in April last year, ECL raised $3.5m in an equity round led by 645 Ventures.
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