Exclusive: D2C brand Ecosoul secures Rs 45 Cr debt from Bajaj

Ecosoul, a D2C eco-friendly home essentials startup, has raised Rs 45 crore (approximately $5.2 million) in fresh debt funding from Bajaj Financial Securities.

The company last raised a major funding round in October 2022, securing $10 million led by Accel and Singh Capital Partners.

The Ecosoul’s board has issued 7,500 compulsory convertible debentures at a face value of Rs 60,000 each to secure Rs 45 crore from Bajaj Financial, according to its regulatory filing accessed from Registrar of Companies (RoC).

The proceeds will be used to meet working capital needs and other general corporate purposes, according to the filing.

Founded in 2020 by Rahul Singh and Arvind Ganesan, EcoSoul offers eco-friendly home essentials made from sustainable materials such as palm leaves, bamboo, sugarcane bagasse, and PLA. Its product range includes items like bamboo chopping boards, biodegradable cups, and palm leaf plates.

The company boasts a portfolio of over 1,800 products, available across 50+ retail stores in more than seven countries, including India, the USA, Vietnam, and China.

EcoSoul reported over 40% year-on-year revenue growth, reaching Rs 26.8 crore in FY24, as per its India filings. The company, however, posted a loss of Rs 4.6 crore during the same period.

Noida and US-based Ecosoul competes with other sustainable home essentials startups such as CHUK, Delhi-based Ecoware, and Mumbai-based Dinearth, among others.