Clean energy startup Ecoil has successfully secured approximately $2.5 million in a new funding round to advance its mission in the biofuel sector. The investment was led by early-growth stage venture capital firm Fundalogical Ventures, with several other key investors participating. This capital injection is earmarked to scale the company's operations, enhance its technology, and expand its footprint across India.
Addressing a Critical Supply Chain Gap
Founded in 2019 by Sushil Vaishnav and Kirti Vaishnav, Ecoil specializes in the aggregation of used cooking oil (UCO). The company operates a sophisticated network to collect this waste product from restaurants, hotels, and other food service establishments. Its technology-driven platform ensures efficient logistics, regulatory compliance, and proper channeling of UCO for biofuel production.
The startup addresses a significant environmental and health challenge posed by improperly managed UCO. Without organized collection systems, this waste often re-enters the food chain or is disposed of in ways that harm the environment. Ecoil's model provides a structured solution, preventing these risks by creating a formal channel for recycling and reuse.
Strategic Investment for National Biofuel Goals
The funding round saw participation from Caspian Impact Investment and Momentum Capital, alongside existing backer The Chennai Angels. The founders noted that Fundalogical Ventures' extensive experience in logistics and shipping will be invaluable for strengthening their operational backbone. This strategic alignment is crucial for scaling the collection and supply chain infrastructure necessary for their model.
Anil Saldanha of Fundalogical Ventures highlighted that Ecoil is tackling a critical bottleneck in India's biofuels ecosystem. He noted that increasing demand from biodiesel and Sustainable Aviation Fuel (SAF) blending targets makes reliable feedstock aggregation essential. The investment aims to support Ecoil in strengthening sourcing, transparency, and supply chain efficiency at scale.
Future Expansion and Technological Enhancement
With the fresh capital, Ecoil plans a significant expansion of its presence across key markets within India. A primary focus will be on strengthening its technology platform to improve tracking and overall supply chain management. These enhancements are designed to build a more robust and reliable feedstock aggregation network for the growing biofuel industry.
Ankur Shrivastava from Momentum Capital commented on the novelty of Ecoil's approach in creating a traceable supply chain. He emphasized that while the concept of UCO circularity has been discussed, Ecoil has demonstrated a viable solution. This breakthrough unlocks meaningful offtake opportunities that did not previously exist, adding significant value to the ecosystem.
This latest funding round marks a significant milestone for Ecoil, positioning it to play a pivotal role in India's transition to cleaner energy. By creating a structured and transparent supply chain for used cooking oil, the company is not only promoting a circular economy but also addressing a key constraint in the production of biodiesel and SAF. The investment validates Ecoil's innovative model and fuels its potential to make a substantial environmental impact.