Revenue-based financing provider Efficient Capital Labs raises $11 million

Efficient Capital Labs (ECL), a revenue-based financing provider that provides non-dilutive capital to B2B SaaS companies, recently announced it has raised $11 million in a Series A funding round co-led by QED Investors and 645 Ventures.

The round also saw participation from Riverside and Generalist, FJ Labs, and Eudemian Ventures. 

Prior to this round, ECL raised $3.5 million in a seed round in April 2022, led by 645 Ventures. This was followed by a $15 million debt facility in November 2022, which it updated to a $100 million SPV in June 2023, and a further $7 million pre-Series A round, which it announced in July 2023.

Expanding operations to Singapore

While ECL currently operates in the South Asia and the U.S. corridor, the company plans to use the raised capital to expand its presence into Singapore and other Southeast Asia markets. 

In the existing markets, It claims to have originated over $70 million in financing and tripled to serve over 100 companies over 12 months from Q1 2023 to Q2 2024.

Following a unique approach to cross-border financing

ECL distinguishes itself from other revenue-based financing providers by assessing a company's total global revenue across multiple geographies rather than just focusing on a single market.

The holistic approach allows ECL to offer more accurate and tailored financing solutions for B2B SaaS companies that generate a majority of their revenues from the US or North American market while maintaining a significant part of their technology, product development, and operations teams in South Asia.

ECL currently lends to cross-border companies that have at least one entity in the U.S. or India and is the only revenue-based financing company that provides two different denominations of loan for the same customer – USD and INR.

It plans to extend this service to include Singapore dollars, reducing reliance on foreign exchange and helping businesses navigate strict international regulations.

Hiring plans

The company currently employs 25 people across the U.S. and India and plans to expand its team to 30-35 employees by the end of the year.

The new hires will include a Chief Revenue Officer (CRO), a Chief Marketing Officer (CMO), a head of business development and partnerships, and additional engineers.

"We are excited to co-lead Efficient Capital Labs' Series A funding round,” said Aaron Holiday, co-founder and managing partner at 645 Ventures.