July 14, 2023
Why QED invested in Efficient Capital Labs
My decision to invest in Efficient Capital Labs (ECL) boils down to a mix of talent, market potential, strategic advantages and, of course, some instincts.
ECL operates in a market that holds enormous potential. The SaaS landscape in India is maturing rapidly, attracting more investment, and a significant portion of this is geared toward the U.S. buyers.
ECL stuck me from the get-go as solving a real, significant problem for Indian SaaS companies. Too often, these promising businesses find themselves tangled in financing options that are either dilutive or just too expensive. ECL addressed this issue head-on by crafting an innovative approach that transcends geographical borders. Their process of assessing companies in both India and the U.S. paves the way for a more comprehensive understanding of credit and fraud risks. It's not just about making financing accessible to these companies; it's about doing so in a manner that's financially viable for them.
In just six months, ECL had achieved a significant scale, which speaks volumes about its robust business model. It was on a promising trajectory, building its product, technology and sales strategies in a modular fashion to evolve into a multi-country credit assessment platform. Our experience since has further reaffirmed our belief in the company.
The team steering ECL is the real compelling factor. I saw the great blend of experience, tenacity, and innovation in the team. I've known Kaustav Das for some time, and his determination, coupled with his extensive knowledge of credit, risk management and business, is inspiring. And with Manish Arora on board, the sales motion is in capable hands.
Finally, there's a sense of alignment with QED that's hard to ignore. I feel we, at QED, uniquely understand this business, given our long credit pedigree and extensive experience with fintech and technology companies in India and the U.S. And therefore, can help Kaustav, Manish and the team in a way that only operators can.
I feel confident that this partnership will bring about remarkable results.