Fintech startup Efficient Capital Labs raises $7M in funding led by QED Investors, others

Fintech startup Efficient Capital Labs (ECL), providing non-dilutive capital to B2B SaaS companies, has raised $7 million in a pre-Series A funding round led by QED Investors.

The round also saw participation from existing investors, including 645 Ventures, The Fund, Lorimer Ventures, Riverside Ventures and Generalist coming in as a new investor alongside QED. This was ECL’s second raise in less than a year.

ECL provides B2B SaaS companies with a percentage of their ARR as upfront capital, which is 100% non-dilutive in nature. ECL funds customers through its balance sheet, which means that customers get access to capital at a much cheaper cost and don’t have to face the uncertainty that comes with depending on third-party investors or marketplace dynamics to receive capital against revenue.

The latest round of funding led by QED Investors brings the total amount of capital raised by ECL to $110.5 million, which includes a $100 million debt facility. This new round follows the equity raise in April last year of $3.5 million, led by 645 Ventures.

The startup plans to use the raised capital to invest in greater automation, expand its team across engineering, product, underwriting, sales and operations and achieve better unit economics.

Founded in 2022 by Kaustav Das and Manish Arora, "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.," Das said.

"Our value proposition is unmatched, we offer the most capital- and time-efficient solution for SaaS businesses looking to raise growth capital. We are immensely grateful to our investors for putting their faith in our vision and mission. The latest fundraise allows us to continue innovating for the customers who we serve."

ECL claims to have provided funding to more than 50 SaaS businesses, and the business is poised to grow to a total of more than 150 customers before the end of 2023.

"Indian SaaS companies are known for innovative and specialist software solutions, and their growth in selling to the U.S. represents a new era of entrepreneurship and global collaboration," said QED Investors Partner and Head of Asia, Sandeep Patil. "By providing non-dilutive capital to these companies, ECL empowers the founders to build for the long term and drive innovation and growth. Kaustav and Manish are a formidable team. I am thrilled to partner with them and I look forward to what the future holds."

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