Eco-friendly home essentials brand Ecosoul has secured a fresh Rs 45 crore ($5.2 million) debt funding from Bajaj Financial Securities, marking another milestone for the Noida and US-based startup that has been steadily building its presence across global markets.
The funding comes less than two years after Ecosoul’s $10 million equity round led by Accel and Singh Capital Partners in October 2022. According to filings with the Registrar of Companies (RoC), the company issued 7,500 compulsory convertible debentures (CCDs) at Rs 60,000 each to raise the capital.
Fresh Capital to Power Growth
Ecosoul plans to use the proceeds to meet working capital requirements and support general corporate purposes, signaling its intent to double down on expansion and product development.
The startup, founded in 2020 by Rahul Singh and Arvind Ganesan, has already carved a niche in the sustainable products market by offering eco-friendly alternatives made from palm leaves, bamboo, sugarcane bagasse, and PLA.
Its catalog boasts 1,800+ products, including bamboo chopping boards, biodegradable cups, palm leaf plates, and other household essentials designed to replace single-use plastic.
Rapid Expansion Across Borders
What sets Ecosoul apart is not just its eco-friendly DNA but its global footprint. The company’s products are now sold in 50+ retail stores across seven countries, including India, the USA, Vietnam, and China.
This global presence has helped the startup clock a 40% year-on-year revenue growth, with revenues hitting Rs 26.8 crore in FY24. However, it also reported a loss of Rs 4.6 crore in the same period — a reminder of the challenges startups face when balancing scale and profitability.
Competing in a Crowded Market
The eco-friendly home essentials market is heating up, with Ecosoul battling it out against rivals like CHUK, Ecoware (Delhi-based), and Dinearth (Mumbai-based). Each of these players is riding the rising wave of sustainability-driven consumer demand, but Ecosoul’s mix of global expansion, product variety, and investor confidence gives it an edge.
Investors Bet Big on Sustainability
For Bajaj Financial Securities, backing Ecosoul underscores the growing appetite for sustainable consumer brands in India’s booming D2C space. With ESG investing gaining momentum, companies like Ecosoul are becoming attractive bets for both equity and debt investors.
Industry watchers say the eco-friendly home essentials segment is still in its early stages in India, leaving plenty of room for growth as consumers switch to sustainable alternatives.
The Road Ahead
Armed with fresh funding and a diverse product portfolio, Ecosoul is now well-positioned to push for deeper retail penetration and wider global presence. The challenge will be maintaining growth while steering towards profitability in an increasingly competitive market.
But with consumer demand for green alternatives stronger than ever, Ecosoul’s timing couldn’t be better.