Recotap Accelerates Growth with ECL Financing
Read about how Recotap, a marketing tech platform, leveraged ECL financing.
Context
Recotap is an Account-Based Marketing (ABM) and Ad platform that unites B2B Marketing and Sales teams. Its solution helps businesses target high-value accounts and decision-makers, boosting engagement, creating more opportunities, and accelerating conversions. Based in Bangalore and backed by Axilor Ventures and Techstars, Recotap raised a seed round and was scaling to enhance its customer value. However, as it grew, Recotap required additional funding to support its increased operational demands and product development
Key takeaways
- Recotap expanded its engineering team by 50% to enhance product development.
- ECL financing allowed Recotap to delay equity fundraising and preserve ownership.
- The funding provided cash flow stability, enabling Recotap to maintain operational continuity.
Challenges
Recotap faced several challenges as it scaled its operations and continued product innovation.
Delayed Customer Receivables
Despite a steady customer base, Recotap faced cash flow pressures due to delayed payments, threatening daily operations and growth.
Funding for Product Rebuild
To stay competitive, Recotap needed capital for a product rebuild without compromising quality or timelines.
Avoiding Equity Dilution
Recotap aimed to retain ownership and control, so it sought non-dilutive funding options over equity fundraising or conventional bank loans.
Solutions
Recotap partnered with Efficient Capital Labs (ECL) to meet its operational and product development needs without diluting ownership.
Cash Flow Stabilization: ECL financing helped Recotap manage cash flow by addressing delays in receivables, ensuring continuity.
Support for Product Development and Team Expansion: The funding enabled Recotap to proceed with a product rebuild and grow its engineering team by 50%.
Extended Runway and Ownership Retention: ECL’s support allowed Recotap to delay VC fundraising, keeping its strategic focus and control intact.
Results
ECL financing empowered Recotap to focus on growth and product innovation while preserving ownership.
- Improved Cash Flow and Operational Continuity The funding stabilized cash flow, enabling Recotap to grow without operational disruptions.
- Focused Growth and Ownership Preservation By postponing equity fundraising, Recotap maintained control over its business trajectory as a bootstrapped company.
- Accelerated Product Development Recotap expanded its engineering team by 50%, accelerating its product rebuild and enhancing its ABM platform.
