EcoSoul is a fast-growing D2C brand offering eco-friendly home products. The startup has secured 5.2 million USD in debt funding. The round saw the participation of Bajaj Financial Securities. The startup plans to use these fresh proceeds to scale its business, meet working capital needs, and for other general corporate purposes. 

The board has approved a special resolution to allot 7,500 compulsory convertible debentures at an issue price of Rs 60,000 each to raise Rs 45 crore. The company offers an online platform to sell eco-friendly home products, made from sustainable materials like bamboo and palm leaves. The product catalog includes products like biodegradable cups, chopping boards, and palm leaf plates.

What makes EcoSoul Special?

EcoSoul’s D2C model is a big part of its success; the brand sells products directly to customers through its website and apps. The startup skips middlemen like big retail stores, saving money and offering affordable products. This keeps prices lower and builds a direct connection with buyers. 

EcoSoul’s products are also available in over 50 physical stores across seven countries, including India, the USA, Vietnam, and others. These products can also be found easily in US stores like Walmart. Their product range is massive, with over 1,800 items. 

They also use plant-based materials like PLA for cups and cutlery; all sourced sustainably without cutting down trees. These all factors make Ecosoul stand apart in the crowded market. EcoSoul faces competition from other sustainable home essential startups in the same market segment, such as Ecoware. 

Why does the Rs 45 crore funding matter?

This major financial step is set to help the company grow and meet the rising demand for sustainable household items. Debt funding means EcoSoul is borrowing money to be repaid later with interest, rather than giving away ownership like in equity deals. This is an achievement not only for Ecosoul but also for anyone who cares about a greener planet.

This new Rs 45 crore debt comes in the form of 7,500 compulsory convertible debentures, each worth Rs 60,000. This type of debt does not directly put the company’s stakes at risk, but the investment can later be converted into shares, giving Bajaj a potential stake in EcoSoul’s future. Bajaj Financial Securities, part of the trusted Bajaj group, is known to invest in businesses with strong potential. 

This investment is a game-changer for EcoSoul, allowing the firm to invest in its working capital to buy raw materials, manage daily operations, and supply chain. The company will also use the capital to enhance its website and hire more talent. 

Debt funding is a smart choice for a growing company like EcoSoul, as it doesn’t require the owner to give up ownership rights. The debt funding will allow the founders to keep control over the business while scaling up to meet demand.

The journey of Ecosoul

EcoSoul reported a 40 percent increase in its revenue to Rs 26.8 crore in FY24. The net loss was around Rs 4.6 crore in the same duration. This was an impressive growth in a competitive market. Notably, this was growth in a competitive industry. Losses are normal on the path to building new businesses, especially when companies are investing money in working to scale up their platforms, expand their tools, and promote new products. 

Before this debt, Ecosoul has secured over 10.5 million USD across multiple funding rounds since its inception. This includes $10 million raised in its major funding round from Accel and Sign Capital Partners. The firm also secured $35.9k from Alteria Capital in its series A round. Alteria Capital remains the firm’s largest institutional stakeholder. These investments have helped EcoSoul launch new products and enter markets worldwide, while proving that investors see it as a future leader in sustainability.

The bigger picture towards D2C and sustainability

EcoSoul is playing a major role in boosting India’s D2C sector, where brands sell directly to customers, competing against traditional retail. There are a lot of D2C companies in various categories, including jewelry companies and beauty companies that are raising funds, but what makes EcoSoul different from other D2C companies is that EcoSoul focuses on eco-friendliness and sustainability.

The demand for sustainable products is rising rapidly in India and worldwide, fueled by concerns about climate change and waste generation. EcoSoul faces competition from other brands producing similar biodegradable products, but what makes it unique is its global reach and a wide range of products.

The future of Ecosoul:

With this new funding, EcoSoul plans to expand its offerings to more countries and achieve high revenue. The Rs 45 crore fund will help them launch new items, like eco-friendly cleaning supplies or reusable bags. They’ve already built their strong presence in online marketplaces and quick commerce, and this cash could help them boost those channels. 

Their commitment to sustainability, supporting farmers, and reducing waste keeps them aligned with their goal of a green planet. EcoSoul’s products have also caught attention in major media, building trust with customers. The startup also offers benefits like discounts on first orders and easy returns, making it simple for people to order products while contributing to a sustainable future.

Conclusion:

EcoSoul is a D2C startup offering eco-friendly home essentials and products made of sustainable materials. The company raised around 5.2 million USD in its debt funding round from Bajaj Financial Securities. The D2C brand aims to use these fresh proceeds to expand its portfolio and scale its business.

The board allotted 7,500 CCDs for Rs 60,000 each to raise $5.2 million. The company plans to use this amount for general corporate and working capital purposes. As more people look for ways to reduce their environmental impact, brands like EcoSoul make it easier to choose planet-friendly products at an affordable price.

 Whether it’s a bamboo cutting board or compostable plates for your home, small choices can add up to big change. This funding shows EcoSoul is ready to grow while staying true to its mission. EcoSoul is the brand for anyone who wants to live more sustainably.