EcoSoul Home Inc. raises USD10 mn in Series A round led by Accel and Singh Capital Partners
- The funds will be used for launching new products, international expansion in the UK, EU, and Asian markets and augmentation of tech and data capabilities.
- The brand aims to serve customers at 15000+ retail distribution points across the US
EcoSoul Home Inc., a category-leading start-up in the eco-friendly home essentials products space, has raised USD 10 million to wrap up its Series A round. This round is led by Accel and saw the participation of Singh Capital Partners. Over the past year, the company has seen tremendous growth in the US market. It has established itself as a leading player across key e-commerce platforms and retail banners in multiple product categories.
Consumers are increasingly gravitating towards buying environmentally and ethically sustainable products. A recent study by NielsenIQ found that 78 percent of US consumers say that a sustainable lifestyle is important to them. Products with ESG-related credentials accounted for 56 percent of all CPG growth. However affordability is important to consumers as they adopt ESG products.
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On the successful fundraise, co-founders Rahul Singh and Arvind Ganesan said, “We are grateful to our customers, investors, partners, and associates for helping us in driving our mission of accelerating the world’s transition to a sustainable lifestyle by creating plastic-free and tree-free products from earth’s most renewable resources. Our differentiated products and supply chain innovation enables us to bring eco-friendly home essentials to price points comparable to traditional plastic and tree-based paper goods. In short, we are democratizing the eco-friendly home essentials market. We are excited to see the strong adoption of our products in the US market. We thrive on this momentum and plan to expand our product range in potential international markets.”
EcoSoul has fundamentally disrupted the home-essentials market by bringing eco-friendly alternatives within the 25% price range of traditional mainstream plastic or paper goods. In contrast, early eco-friendly home essentials competitor brands priced their products at 1.8x to 2.5x of mainstream plastic or paper-goods brands. Ecosoul has achieved this differentiation with product/material innovation and an optimum supply chain model.
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Prashanth Prakash, partner at Accel said, “There is a global macro-tailwind of shifting away from the use of single-use plastic with increasing regulatory pressure. This coupled with rising consumer sentiments towards sustainable everyday essentials, especially in western markets is driving growth. EcoSoul is taking advantage of this demand and leveraging the Asian supply chain to offer eco-friendly products at affordable price points. The EcoSoul team, with their global supply chain expertise and strong commercial value proposition for retailers, is uniquely positioned to be one of the early disruptors in this industry.”
By 2030, the global eco-friendly & sustainable home goods market is expected to reach $300+ bn. In the US, even though sustainability-marketed products are 16.1% of the market, they delivered 54.7% of the CPG market growth. Sustainability-marketed products grew at a rate of 7.1 times that of conventionally marketed products and 3.8 times that of the CPG market.
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EcoSoul has recently launched several products in India and has expansion plans for the Canada, UK, Germany and UAE markets in the categories of Kitchen and Dining, Bath, Home Care, and Baby and Feminine Care.
About EcoSoul Home
Founded in 2020, EcoSoul Home Inc. is a global eco-friendly products company with an active sales and operational presence in countries like the USA, India, China, and Vietnam, offering more than 100+ products worldwide. The brand currently has multiple sales channels, including D2C, retail distribution across ~3500 stores in the US, and multiple B2B customers.
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Accel is a global venture capital firm that invests in people and their companies from the earliest days through all phases of company growth. Investing in India for more than a decade, they have been the first, or among the earliest partners to many category-defining startups such as: Acko, Blackbuck, BrowserStack, Chargebee, CultFit, Moglix, Spinny, Swiggy, UrbanCompany, Zetwerk, and others. Accel helps ambitious entrepreneurs build innovative and durable businesses.