Entrepreneur sells house to fund biz, later secures millions from investors

EcoSoul Home Inc, which has recently secured $10 million - Series A round led by Accel and Singh Capital Partners, is one of the largest eco-friendly products companies with an active presence in countries like the US, Canada, India, China, and Vietnam, offering more than 100 products in the market ranging from tableware, kitchenware, bath care, baby care to personal care items. The brand currently has multiple sales channels, including D2C, Amazon, and Walmart.com, a Retail presence in nearly 2,000 stores, and a significant B2B presence. Co-founded by Rahul Singh and Arvind Ganesan in Aug 2020, EcoSoul Home significantly contributes to the local economy by encouraging SME sectors and women empowerment and exporting EcoSoul products from India, thus contributing to the thriving Indian exports sector.

Speaking to Bizz Buzz exclusively, Rahul Singh, Co-founder, Eco Soul Home, explains how they are planning to accelerate the world's transition to a sustainable lifestyle by creating eco-friendly goods from renewable resources.

How did the EcoSoul Home journey start?

The journey of EcoSoul Home started with a deep passion for environmental sustainability and a desire to make a positive impact. As co-founders, we strongly believe in the old adage that “we do not inherit earth from our ancestors, we borrow it from our children.” In 2020, we came across several studies by NielsenIQ, BCG etc. found that 78 per cent of the consumers say that a sustainable lifestyle is important to them. Products with ESG-related credentials accounted for 56 per cent of all CPG growth. However, affordability is important to consumers as they adopt ESG products. Driven by passion for environment, we started EcoSoul to fundamentally disrupt the global home-essentials market by bringing eco-friendly alternatives within the 25 per cent price range of traditional mainstream plastic or paper goods. So, in 2020, we embarked on our entrepreneurial journey with the vision of EcoSoul Home Inc.

With how much funds did you start? Was there any investor at that point?

As an entrepreneur, it was clear to us that while funding is important for scaling, do not build a business that survives on funding. We jokingly say in the company “We are in the business of building a company not in the business of fundraising”. For the first fourteen months of our journey when we were proving the product-market fit, we did not raise any external funding. I started by leveraging personal savings (even sold my house in New York) and reaching out to friends and family who believed in my vision.

Securing funding became a crucial aspect of scaling our business especially as our ambition was to expand globally. As the business gained traction and demonstrated potential, we raised funding from several global venture capitalists who shared our commitment to sustainability.

How has been the journey so far?

The journey so far has been incredibly fulfilling. EcoSoul Home Inc is now a global eco-friendly products company with an active sales and operational presence in countries like the USA, Canada, India, UK, China, and Vietnam, offering more than 100 products worldwide. The brand currently has multiple sales channels, including direct-to-consumer, retail distribution across 3500 stores in the US, and multiple B2B customers. We have witnessed a growing awareness and demand for eco-friendly products globally. Our brand has gained recognition for offering sustainable alternatives that are both affordable and chic. We have seen a significant positive response from consumers who are eager to embrace a more sustainable lifestyle.

How many products do you offer from your stable now? How many more would you like to add over the next 2 years or so?

Currently, we offer more than 100 products from our stable, ranging from tableware, kitchenware, bath care, baby care to personal care items. However, our vision extends beyond this, and we are constantly exploring and developing new sustainable products and eco-friendly source materials. Over the next two years, we aim to add a diverse range of innovative products that align with our mission of creating a waste to wealth circular economy ecosystem. We are currently driving research on multiple source materials including sugarcane bagasse, rice husk, wheat straw and bamboo pulp.

How do you source your products?

We are committed to sourcing our products from renewable resources that are located close to the source of finished goods production.

For achieving these goals in India we have a multifaceted approach (a) We prioritize sustainable sourcing practices, collaborating with local farmers, manufacturers, and small business operators to directly support the local economy. (b) By co-investing in research and development, we have been able to create eco-friendly products that are made from “agro-waste” like Rice Husk, Wheat Straw, Bagasse, Fallen Palm Leaves (c) Have on-the-ground operations team that help train and scale local manufacturing (d) actively collaborate with key universities and institutions for product research and manpower development and (e) Data and AI at the heart of everything to deeply optimize our supply chain and reduce our carbon footprint.

Do you have any training arm to groom and upskill women who make many of these products?

Empowering and upskilling women are an integral part of our mission. We actively promote women's empowerment by providing opportunities for employment, leadership, and skill development. Close to 50 per cent of all Ecosoul employees are women and are key to driving our success. We have established a training arm to groom and empower the women who make many of our products. Through this initiative, we provide them with training, fair wages, and a supportive work environment.

Now that you have raised $10 million from investors, how would you utilize these funds?

The recent funding of $10 million from investors will be utilized strategically to further fuel our product growth and expand our global operations. Specifically, the funds will be used for the launch of new products, international expansion in the UK, EU, and Asian markets and augmentation of tech and data capabilities, we also plan to invest in research and development, innovation, and technology to develop new sustainable products. Additionally, we will focus on strengthening our supply chain, expanding our marketing efforts, and enhancing our customer experience. These funds will also enable us to scale up our manufacturing capabilities and increase our market presence.

How many outlets do you have currently- in India and abroad? How many more would you like to add?

Currently, we have a significant retail presence in India and abroad. Globally around 4,000 stores carry sustainable Ecosoul products. In addition to a global store presence, we also focus on reaching to our customers directly through platforms such as Amazon, Walmart, Flipkart, and our own website www.ecosoulhome.com. We believe in reaching as many people as possible with our sustainable alternatives. In the next phase of our expansion, we aim to add more outlets in key locations, both in India and internationally, to make our products easily accessible to a larger audience.

Are you looking at any new geographies?

Yes, we are constantly exploring new geographies to expand our presence. While we are already active in countries like the USA, Canada, UK, India, China, and Vietnam, we believe there are many other regions that can benefit from our eco-friendly products. We are launching in the UAE market in the next quarter and evaluating market opportunities and conducting thorough research to identify the most suitable geographies for our next phase of expansion.

Going forward your thrust would be on D2C or having your own/franchise retail outlets?

Our approach has always been multi-faceted, encompassing both direct-to-consumer (D2C) channels and retail outlets. We recognize the importance of providing convenience and accessibility to our customers. While D2C allows us to engage directly with consumers and build strong relationships, having our own and franchise retail outlets helps us reach a wider audience and create a physical presence for our brand. We will continue to focus on both channels to maximize our impact and meet the diverse needs of our customers.

Any plans to get into any new product category with the same sustainability/eco-friendly theme?

Yes, we are constantly exploring new product categories that align with our sustainability and eco-friendly theme. We understand that to create a significant impact, we need to offer sustainable alternatives in various aspects of everyday life.

Research tells us that after single use plastic products, baby diapers and female contribute heavily to the landfills and water pollution. We are currently preparing fully compostable options in these categories and planning to launch them shortly. Further, home care products such as cleaners and detergent made from petrochemicals are polluting our rivers and lakes. Tackling this menace is the next frontier for us. Our goal is to introduce innovative, sustainable solutions in different categories that contribute to a greener and healthier world.