Efficient Capital Labs (ECL) Raises $11M Series A for Cross-Border Financing
Efficient Capital Labs provides capital in a fast, seamless & cost-effective manner to SaaS Businesses.
Efficient Capital Labs (ECL), a revenue-based financing startup targeting emerging market SaaS businesses, recently secured $11 million in a Series A round led by 645 Ventures and QED Investors. ECL is focused on cross-border financing, with 60% of its customers based in India and 20% in Southeast Asia. They leverage connections to local financial tools similar to Plaid and QuickBooks, enabling it to offer financing to companies with U.S. and non-U.S. revenue streams. The startup has already underwritten over 100 businesses, providing capital equivalent to 25-50% of a company's projected annual revenue and charging a fee between 10-13%.
ECL has potential for global expansion, especially given the strong U.S. revenue ties of major Indian tech firms like Freshworks and Tata Consulting Services. By offering financing denominated in both U.S. dollars and rupees, ECL is positioned to mitigate currency risk and cater to a broader market. The company’s strategy of expanding from East to West, starting with India and Southeast Asia, sets it apart from competitors who have primarily focused on North America and Europe. ECL's co-founders, Kaustav Das and Manish Arora, see this as a significant competitive advantage, particularly in navigating the complex India-to-U.S. financing corridor. Looking ahead, ECL plans to further expand into Southeast Asia, the Middle East, and eventually Europe, capitalizing on its early mover advantage in these high-growth regions.
Read more in Axios Pro and Business Wire.
Read more from Kaustav in Founders Everywhere.
Check out Kaustav Das with Scott Hartley on the Venture Everywhere podcast: Efficiently Speaking, Listen now on Apple and Spotify and check out all our past episodes here!
