EcoSoul Home – a category-leading start-up in the eco-friendly home essentials products space – announced it has raised $10 million to wrap up its Series A round. This funding round was led by Accel and saw the participation of Singh Capital Partners. In the past year, the company has seen tremendous growth in the US market. And it has established itself as a leading player across key e-commerce platforms and retail banners across multiple product categories.
Consumers have been increasingly gravitating towards buying environmentally and ethically sustainable products. And a recent study by NielsenIQ found that 78% of US consumers say that a sustainable lifestyle is important to them. The products with ESG-related credentials accounted for 56% of all CPG growth. But affordability is important to consumers as they adopt ESG products.
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. And 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. Plus EcoSoul has achieved this differentiation with product/material innovation and an optimum supply chain model.
By 2030, the global eco-friendly and sustainable home goods market is expected to reach over $300 billion. In the US, even though sustainability-marketed products are 16.1% of the market, they delivered 54.7% of the CPG market growth. And sustainability-marketed products grew at a rate of 7.1x that of conventionally marketed products and 3.8x that of the CPG market.
EcoSoul also 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.
KEY QUOTES:
“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.”
— Co-founders Rahul Singh and Arvind Ganesan
“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.”
— Prashanth Prakash, partner at Accel
