Ecosoul: Eco-Friendly Home Essentials Startup Secures Debt Funding
Ecosoul, the eco-friendly home essentials startup, has successfully acquired Rs 45 crore (roughly $5.2 million) in new debt funding from Bajaj Financial Securities. The startup had previously raised significant funds in October 2022, amounting to $10 million, with Accel and Singh Capital Partners leading that round.
According to a regulatory filing obtained from the Registrar of Companies (RoC), Ecosoul’s board has issued 7,500 compulsory convertible debentures, each with a face value of Rs 60,000, to secure the Rs 45 crore from Bajaj Financial. The funds will be used to address working capital requirements and for various corporate purposes, as stated in the filing.
Founded in 2020 by Rahul Singh and Arvind Ganesan, Ecosoul offers a line of eco-friendly home essentials crafted from sustainable materials such as palm leaves, bamboo, sugarcane bagasse, and PLA. The range includes products like bamboo chopping boards, biodegradable cups, and palm leaf plates.
Ecosoul’s product portfolio boasts over 1,800 items that are available in more than 50 retail stores across seven countries, including India, the USA, Vietnam, and China. The company reported an impressive year-on-year revenue growth of over 40%, reaching Rs 26.8 crore in FY24, as indicated by their filings in India. Despite this growth, Ecosoul recorded a loss of Rs 4.6 crore during the same financial year.
With headquarters in Noida and the USA, Ecosoul faces competition from various other sustainable home essentials startups, such as CHUK, Ecoware based in Delhi, and Dinearth from Mumbai.
