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Scrapuncle has raised INR 60 lakhs from shark tank season 2. Amit invested in this startup.
The owner asked for 60 lakhs for 3% equity of the company at a valuation of 20 crores. Veenita offered 30 lakhs for 5% equity and 30 lacs at debt at a 12% interest rate. Amit offered 60 lakhs for 10% equity. Anupam offered 60 lacs for 8% equity. Later Amit gave a final offer of 60 lakhs for 5% equity. And then, the final deal was closed with Amit for 60 lakhs for 5% equity.
About the Scrapuncle
The founder of the company is Mukul Chabra, and he is from Delhi. He has done B.Tech degree from IIT. He also handled a start-up drone business previously. Since his childhood, he has been keenly interested in robotics. He used to find electronic components in his uncle’s junkyard, and he loved doing this. He got his business idea when he discovered that there is no such organized sector for scrap in Delhi.
Scrapuncle was started in August 2020 with the aim of making scrap uncle India’s biggest online app. Due to unorganized and neglected scarp rags, pickers and households face problems such as how to reuse waste, time mismatch, unregulated prices, unverified systems, etc. But just like other services, the ragpickers can come online too. Therefore he came up with the idea of a modern-day ragpicker scrap uncle. They have a website for this service with features like sending verified and trained agents, Weighing scrap with 100% accuracy, people can get the best value against scrapes, collecting scrapes from various sources such as home, office etc., and automating the recycling process of waste management.
Scrapuncle has a complete cycle to collect the scrap. A normal rag picker goes to the home, collects the scrap and sells it to the aggregator. Then goes to the big aggregator classifies and collects the scrap. And then it comes to the people who take and makes more profit out of it. It has completed more than 22,000 pickups in 2 years in Delhi, and 14 lakh kilograms of scrap has been sent for recycling. This business had increased four times during the covid period.
Scrapuncle’s business statistic:
The revenue in the financial year 2020-2021 was 35 lakhs. In 2021-2022 it was ₹1.48 crores, and in 2022-2023 projected sales are ₹6 crores. Out of total sales, 10% comes from B2B business, and the rest comes from B2C business. The company’s customer acquisition cost is 110, and the Retention rate is 40% to 50% in a 4-month cycle. The gross margin is 25%. Out of 27.7 lakh sales, 5.5 lakhs goes to collection partners, 1.5 lacs to the collection centres, 1.25 lakhs for marketing, 3.25 lakhs to team salary and 15 lakhs to the customers.
Delhi’s scrap market size is around 2 billion. The company’s monthly sales are 27.5 lakhs. Customer to recycler’s Gross margin is 45%. Its Scrap dealer earns 30k to 35k per month, and now its collection partner earns up to 70000 monthly.
What problem did scrap uncle solve?
Scrapuncle offers scrap recycling services via a website and an app. By using this service, you can get its on-demand doorstep pickups. It brings solutions to India’s growing waste management problem and strives to save the environment. Scrapuncle also offers a variety of scrap that can be sold for recycling, like papers, metal, plastic, cardboard, heavy e-waste etc.
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