Rahul Singh and Arvind Ganesan started their entrepreneurial journey with EcoSoul in 2020. Both Singh and Ganeshan previously worked together at Wayfair. Their entrepreneurial foray is based on their learnings from their experience at the American ecommerce company where they worked on creating sustainable product categories.
“It was during this time that we realized the significant gap for eco-friendly everyday essentials. Consumers were looking for products that weretrustworthy, affordable and available everywhere and no company was solving for this at scale,” Singh told Entrackr.
To make this happen, Singh took the plunge by quitting his job, selling his house in New York, and relocating to India.
EcoSoul sells sustainable products through its website, ecommerce platforms like Flipkart and Amazon, and also offline through partner stores. The catalog includes tableware, kitchenware, and compost bags. These products are made from using sustainable materials like palm leaves, bamboo, sugarcane bagasse, and PLA. Singh said the company currently offers 43 product varieties and 1,800 SKUs.
The Delhi-based startup has already raised nearly $15 million in two rounds of funding and has backing of investors like Accel.
It’s worth noting that sustainability has become a lucrative market with industry-wide aspirations of becoming carbon neutral and support ecofriendly products and services.
The global green technology and sustainability market size was valued at $15.85 billion in 2022 and is expected to expand at a CAGR of 22.7% from 2023 to 2030, according to a research.
Here are edited excerpts from the conversation with Singh:
Who is your target audience?
In terms of target users, at the heart of EcoSoul’s audience are women between the ages of 25 and 45. Zooming out, our focus also extends to families, Millennials and Gen Z, who are inherently attuned to global issues and recognize that even small actions can yield substantial impacts. This demographic is particularly receptive to our mission.
What is your business model? How do you make profits?
Our business model at EcoSoul revolves around offering a range of everyday essentials crafted from sustainable materials like palm leaves, bamboo, sugarcane bagasse, and PLA. We’re committed to providing eco-conscious consumers with accessible and environmentally friendly alternatives. In terms of profitability, we generate revenue through the sale of these products.
Our pricing structure is designed to balance affordability with the costs associated with sustainable production methods. By maintaining a focus on quality and sustainability, we’ve been able to establish a solid customer base that appreciates the value and positive impact of our offerings. This, in turn, allows us to reinvest in the business, expand our product line, and further our mission of promoting sustainable living.
Can you share any growth figures?
EcoSoul started out with an initial investment of Rs 4 crores back in August 2020. And, within just three years of our launch, we have a global turnover of more than Rs 300 crore.
Moreover, EcoSoul has also secured Rs 125 crore in two funding rounds heldbetween 2021 and 2022.
Every product that EcoSoul has in the market for more than a year is profitable. At the company level, we aim to hit profitability in 2024 given 2023 was near to launching more than 20 new products and 4 new countries.
How do you plan to expand your business? What new services do you plan to add?
We’re gearing up to unveil PLA or a cornstarch-based product category. Think of it as the next level in eco-friendly materials. From PLA cups to PLA straws, we’re talking about 100% plastic-free, tree-free options that are completely compatible with our planet-friendly ethos.
EcoSoul is also committed to bringing more innovative products to the market like fully compostable diapers and sanitary pads early next year.
But that’s not all. We’re also in the works for another exciting category: paper bamboo products. Picture wet wipes, facial tissues, and more, all designed to be both sustainable and accessible. And, of course, affordability is a key factor in all these endeavors.
