Efficient Capital Labs (ECL), a revenue-based financing provider that provides non-dilutive capital to B2B SaaS companies, recently announced that it has raised $11 million in a Series A. funds round co-led by QED Investors and 645 Ventures.
Riverside and Generalist, FJ Labs and Eudemian Ventures also participated in the round.
Prior to this round, ECL raised $3.5 million in a seed round in April 2022, led by 645 Ventures. This was followed by a $15 million credit facility in November 2022, which it upgraded to a $100 million SPV in June 2023, and another $7 million pre-Series A round, which it announced in July 2023.
Expansion of operations to Singapore
While ECL currently operates in South Asia and the US corridor, the company plans to use the capital raised to expand its presence in Singapore and other Southeast Asian markets.
In existing markets, it claims to have originated more than $70 million in financing and tripled that to serve more than 100 companies over 12 months from Q1 2023 to Q2 2024.
Following a unique approach to cross-border financing
ECL distinguishes itself from other revenue-based financing providers by assessing a company’s total global revenue across multiple geographies rather than focusing on just one market.
The holistic approach enables ECL to offer more accurate and customized financial solutions for B2B SaaS companies that generate the majority of their revenue in the US or North American market while maintaining a significant portion of their technology, product development and operations teams in South Asia.
ECL currently provides loans to cross-border businesses that have at least one entity in the US or India and is the only revenue-based finance company that offers two different loan denominations for the same customer – USD and INR.
The service is planned to be expanded to include Singapore dollars, reducing reliance on foreign exchange and helping businesses navigate strict international regulations.
Hiring plans
The company currently employs 25 people in the US and India and plans to expand its team to 30-35 employees by the end of the year.
New hires will include a chief revenue officer (CRO), a chief marketing officer (CMO), a head of business development and partnerships, and additional engineers.
“We are excited to co-lead Efficient Capital Labs’ Series A funding round,” said Aaron Holiday, co-founder and managing partner of 645 Ventures.
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