The pre-Series A round of funding for the fintech company Efficient Capital Labs (ECL) saw participation from 645 Ventures, a previous investor, as well as new investors The Fund, Lorimer Ventures, Riverside Ventures, and Generalist. QED Investors served as the round’s lead investor.
Including a $100 million debt facility and a $3.5 million equity round in April of last year, this brings the startup’s total amount raised to $110.5 million.
According to a press release from ECL, the company intends to use the funds raised to increase automation, grow its engineering, product, underwriting, sales, and operations teams, and improve unit economics.
Kaustav Das and Manish Arora co-founded ECL in 2022, and it offers business-to-business SaaS companies an upfront capital payment that is entirely non-dilutive and equal to a portion of their ARR. Customers of ECL receive funding from its balance sheet, which allows them to access capital at much lower costs and eliminates the risk associated with relying on external investors or market forces to receive funding in exchange for revenue.
The startup, which has offices in Bengaluru and New York, has so far funded more than 50 SaaS companies since its founding, and it expects to have more than 150 clients by the end of 2023.