Fintech company Efficient Capital Labs (ECL) has raised $7 million in pre-Series A round led by QED Investors along with participation from existing investor 645 Ventures and new investors The Fund, Lorimer Ventures, Riverside Ventures and Generalist.
This bring the total amount raised by the startup to $110.5 million including a $100 million debt facility and $3.5 million equity round in April last year.
The company plans to use the raised funds in greater automation, expand its team across engineering, product, underwriting, sales and operations and achieve better unit economics, ECL said in a press release.
Co-founded in 2022 by Kaustav Das and Manish Arora, ECL provides business-to-business SaaS companies 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.
So far, the Bengaluru and New York-based startup has provided funding to more than 50 SaaS businesses since its inception and the business is poised to grow to a total of more than 150 customers before the end of 2023.
