ECOIL Raises $2.5M for Biofuel Feedstock Supply Chain

India's burgeoning biofuel sector is receiving a significant boost as ECOIL, a company focused on the organized collection and responsible processing of used cooking oil (UCO), has successfully closed a Series A funding round totaling approximately $2.5 million. This crucial capital infusion was led by Fundalogical Ventures, signaling strong investor confidence in ECOIL's model for creating a circular economy for a vital biofuel feedstock.

The funding round saw robust participation from other key investors, including Caspian Impact Investment and Momentum Capital. Existing supporter The Chennai Angels also reinvested, underscoring their continued belief in ECOIL's mission. Notably, Shell had previously provided early-stage backing, highlighting the strategic importance of UCO as a sustainable fuel source. Right Pillar Advisors served as the exclusive financial advisor for this transaction.

Founded in 2019 by Sushil Vaishnav and Kirtti Vaishnav, ECOIL is tackling a critical bottleneck in India's transition towards cleaner energy. The company establishes a scalable network to collect used cooking oil from restaurants, hotels, and food service businesses. This collected UCO is then channeled into the production of sustainable biofuels and aviation fuel, preventing it from re-entering the food chain or being disposed of improperly, which poses significant environmental and health risks.

The strategic importance of this funding cannot be overstated, given India's ambitious targets for biofuel and Sustainable Aviation Fuel (SAF) mandates. While refining capacity is expanding, the upstream supply chain for UCO feedstock remains fragmented. Global markets, particularly in Europe and the United States, have demonstrated that efficient waste feedstock supply chains are fundamental to scaling SAF production. ECOIL's technology-enabled platform addresses this gap by ensuring traceability, compliance, and efficient aggregation, while also creating formal employment opportunities for informal sector workers.

Anil Saldanha of Fundalogical Ventures emphasized the strategic fit, stating, “ECOIL is addressing a critical bottleneck in India’s biofuels ecosystem – reliable feedstock aggregation at scale. With increasing demand driven by biodiesel and SAF blending targets, the challenge lies in upstream collection and supply chain efficiency. We see this as a strategic opportunity to support ECOIL in strengthening sourcing, transparency and enabling reliable feedstock availability, at scale.” This sentiment was echoed by Vijayalakshmi NM from Caspian Impact Investment, who highlighted ECOIL's dual impact: “The company’s model also creates meaningful livelihood opportunities by integrating informal workers into the formal economy, driving both climate and social impact.”

Ankur Shrivastava from Momentum Capital added, “Circularity for used cooking oil has long been discussed, but building a traceable and reliable supply chain has remained a key barrier. Sushil and Kirti have shown that this problem is solvable, unlocking meaningful offtake that did not exist before.” The investment will empower ECOIL to expand its operational footprint across India, enhance its technological infrastructure, and solidify its position as a key player in the nation's sustainable energy transition.