Start-ups should not build a business that survives on funding: Rahul Singh

Adgully has been turning the spotlight on the entrepreneurs who fought against all odds to bring their dreams to fruition in our special series – START-UP STARS. We at Adgully wholeheartedly support the ‘Vocal for Local’ movement and have been featuring numerous local/ homegrown businesses, brands, and Apps in the count.

Founded in 2020, EcoSoul Home is on a mission to accelerate the world’s transition to a sustainable lifestyle by creating eco-friendly goods for all from Earth’s most renewable resources. The eco-friendly goods brand offers a variety of household products including plant-based tableware, bamboo kitchenware and compost bags. All products are certified and fully compostable.

In conversation with Adgully, Rahul Singh, Co-founder, EcoSoul Home, talks about the establishment of EcoSoul Homes, the challenges and landmarks in its start-up journey, and much more.

What motivated you to establish EcoSoul Home as entrepreneurs? 

As co-founders and young parents, we strongly believed in the age-old adage that “we do not inherit the Earth from our ancestors, we borrow it from our children”. The journey of EcoSoul Home started with a deep passion for environmental sustainability and a desire to make a positive impact. Our motivation to start EcoSoul Home as entrepreneurs comes from a simple motive. 

What need gap did you aim to fulfill with EcoSoul Home, and what is your core business proposition? 

At EcoSoul, our primary aim is to bridge a significant gap that exists in the realm of sustainable living – making sustainability Available, Accessible and Affordable for all. And, because our brand offers a wide range of everyday essentials that is 100% planet-safe, we aim to help people live a sustainable life, starting right at their homes.

Besides making sustainability truly accessible, we aim to offer what we call “Guilt-Free Convenience”. Our eco-friendly single-use alternatives not only help people follow sustainability but also enjoy it without having to compromise on their convenience.

How did you identify your target audience, and did you conduct a feasibility study before starting the business? 

While conceptualizing our business model, we collaborated with leading agencies of the world to identify the change in consumer behavior towards sustainability. According to Nielsen, more than 78% of consumers want to go eco-friendly if there are credible and affordable alternatives to single use plastic.

We recognized that our mission to make sustainability accessible, affordable, and available was aligned with the needs and preferences of working millennials and GenZ consumers. This includes environmentally conscious consumers, those prioritizing ethical consumption, and those motivated to reduce their ecological footprint. Furthermore, we aimed to cater to individuals who were looking for practical and affordable ways to incorporate sustainability into their daily lives. 

What were the challenges you faced in your startup journey and how did you overcome them? 

EcoSoul Home’s journey was not without its share of challenges, and our team demonstrated resilience and strategic thinking to overcome them. One of the foremost challenges we encountered was sourcing eco-friendly raw materials and upholding consistent product quality, all while ensuring our prices remained competitive. These challenges were critical to address, as they were directly tied to our core value of making sustainability accessible to a wide audience. 

To tackle these challenges head-on, we adopted a multi-faceted approach. Our co-founder, Rahul Singh, moved to India to build a robust supply chain in Asia. 

Recognizing the importance of raw materials in our eco-friendly product line, we proactively forged strategic partnerships with more than 150+ manufacturers in Asia. This strategic move transformed EcoSoul into a burgeoning global green products brand. By collaborating directly with the manufacturers, we not only gained access to high-quality, sustainable raw materials but also contributed to the growth of eco-conscious industries in the region. 

What clearances and certifications did EcoSoul Home require from various authorities? 

The journey of EcoSoul Home necessitated a series of global clearances and certifications from diverse international authorities, affirming our unwavering commitment to eco-friendly products and sustainable principles. These certifications not only substantiated our claims but also played a pivotal role in establishing consumer trust and setting our brand apart within the market. 

All our materials are eco-friendly, fully compostable, and ethically sourced. To add to our credentials all our products are certified by leading global agencies with international certifications like FSC, USDA, FDA, TUV, BPI, ISO, NSF and CPCB etc.

How did you address the funding issue common to many startups? 

Addressing the common funding challenge many startups encounter, we navigated the company's initial 14 months as a bootstrapped enterprise. The journey towards securing our first investor was a distinctive one, characterized by strong investor belief in our product's potential as well as our mission. 

Co-founders of the company had more than 15+ years each of experience in scaling various companies and products throughout their careers. With strong initial traction across the US and Canadian markets, we attracted many large investors like Accel, SinghCap, Alteria Capital, BoldCap, FounderBank Capital and Wayfund. Overall, we have raised $16 million across Seed and Series A rounds for our global expansion. 

How has digital technology helped in furthering your business? 

EcoSoul is a digital-first and data driven brand. EcoSoul has developed and deployed proprietary AI solutions with a mission to become a cutting-edge consumer packaged goods (CPG) company that harnesses the power of artificial intelligence (AI) to revolutionize the way CPG products are developed, manufactured, marketed, and distributed. With a strong focus on innovation and technology, EcoSoul combines deep industry expertise with advanced AI capabilities to deliver exceptional products and drive sustainable growth in the fast-paced consumer goods market. 

EcoSoul aims to transform the sustainable products CPG industry by leveraging AI’s power to drive innovation, enhance operational efficiency, and deliver exceptional consumer experiences. By leveraging AI algorithms, our solutions enable businesses to make data-driven decisions, respond swiftly to market changes, reduce waste, and create products that meet consumer expectations. Through our sustainable practices, we strive to contribute to a more environmentally responsible CPG industry. 

What were the key learnings from your journey as entrepreneurs so far? 

The journey as entrepreneurs has been a profound learning experience, offering insights that have shaped our approach and outlook.

My advice to budding entrepreneurs is 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 14 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.

Among the key lessons garnered, authenticity and credibility have emerged as paramount in the realm of the eco-friendly market. Establishing trust among consumers by consistently delivering on our promises and maintaining transparency has been crucial to our growth. 

Another foundational lesson is building a team that shares our vision and values. We realized that a dedicated and passionate team is the cornerstone of success. Collaborating with trusted partners, be they suppliers or retailers, has also proven instrumental in navigating challenges and expanding our reach. This symbiotic network of relationships has propelled our growth and amplified our impact. 

How do you see the startup ecosystem progressing in 2023? 

As 2023 unfolds, a clear trend within the startup ecosystem is the escalating emphasis on business model sustainability. This year marks a pivotal shift where businesses and investors are increasingly cognizant of the long-term value added by a product or service. There is now an increasing focus on the profitability of the company and businesses are now adjusting to this new reality. 

In all it will be harder to raise funds for the companies that are in the early stages of proving their business models but great business models with demonstrated product market fit will not have much impact on their journey. Having the right team to execute will also be a true differentiator for the startups. 

What message do you have for budding entrepreneurs? 

My advice to budding entrepreneurs is that Entrepreneurship can be challenging and lonely journey. More than 95% of entrepreneurs fail in the venture. One must be very clear why they are pursuing entrepreneurship. My advice would be to build an entrepreneurial dream beyond financial success. Instead, build something that you are truly passionate about and the world has a clear need for it. 

Entrepreneurship requires a unique combination of passion, resilience, adaptability, and risk-taking. Building a business from scratch involves numerous hurdles, including securing funding, navigating market uncertainties, and managing day-to-day operations. It demands long hours, dedication, and the ability to handle setbacks and learn from failures. 

However, despite the challenges, entrepreneurship is also incredibly rewarding. It provides an opportunity to pursue your passion, make a difference, and have a lasting impact. The sense of accomplishment that comes from building something meaningful is unparalleled. While it may be hard, the fulfilment and personal growth it offers make it a worthwhile journey for those who are driven to create change.