Fintech company Efficient Capital Labs (ECL) has raised $7 million in a pre-Series A round led by QED Investors along with participation from existing investor 645 Ventures and new investors The Fund, Lorimer Ventures, Riverside Ventures, and Generalist.

With a $100 million financing facility and a $3.5 million equity round in April of last year, this brings the startup’s total sum funding to $110.5 million.

According to a news release from ECL, the firm intends to use the capital raised to increase automation, grow its engineering, product, underwriting, sales, and operations teams, and improve unit economics.

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Co-founded in 2022 by Kaustav Das and Manish Arora, ECL provides business-to-business SaaS companies a percentage of their ARR as upfront capital which is 100% non-dilutive in nature. ECL funds customers through its balance sheet, which means that customers get access to capital at a much cheaper cost and don’t have to face the uncertainty that comes with depending on third-party investors or marketplace dynamics to receive capital against revenue.

So far, the Bengaluru and New York-based startup has provided funding to more than 50 SaaS businesses since its inception and the business is poised to grow to a total of more than 150 customers before the end of 2023.