Techjockey News

Efficient Capital Labs (ECL) is a FinTech company that offers non-dilutive capital to B2B SaaS businesses in the South Asia-U.S. region. They recently raised an impressive $7 million in a Pre-Series A funding round.

They secured funds in a successful funding round led by QED. Noteworthy existing investors such as Riverside Ventures, 645 Ventures, Lorimers Ventures, and The Fund also participated. Additionally, a new investor, Generalist, joined QED in this funding round.

ECL’s core business model is to offer B2B SaaS companies a portion of their Annual Recurring Revenue (ARR) upfront without diluting their ownership. By directly funding their customers from their balance sheet, ECL provides a cost-effective way for these firms to access capital. This approach reduces uncertainty that comes when relying on third-party investors for revenue capital.

After ECL has secured $7 million in funding, adding to their earlier $100 million debt facility. Now they have raised an impressive $110.5 million in total. The main goals for this capital infusion are to enhance automation capabilities, expand key departments, and improve the unit economics.

Kaustav Das, co-founder of ECL, explained the company’s mission as providing businesses in emerging markets, like India, with easy access to capital. He said, “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.”