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ScrapUncle, founded by Mukul Chabra, is an innovative startup based in Delhi that focuses on recycling scrap and waste materials. Mukul, who has a background in robotics, was inspired to start the business due to his love for electronic components found in his uncle's scrapyard. He noticed that the scrap industry in Delhi was unorganized and neglected, leading to several problems such as low ratings, unreliable service, and difficulties in reusing waste.
The aim of ScrapUncle, a startup founded by Mukul Chabra, is to provide an organized and efficient waste management solution for the people of Delhi and beyond. The company's vision is to become India's largest online app for waste management, thereby transforming the way people think about and deal with waste.
ScrapUncle aims to address several problems in the waste management sector, including unorganized collection, unreliable service, and low ratings. By using modern technology and trained agents, the company ensures that waste collection is streamlined and efficient. It also offers a hassle-free solution for customers who want to dispose of their waste and provides accurate measurements and fair value for the materials collected.
Another critical aim of ScrapUncle is to promote recycling and reduce the overall impact of waste on the environment. By automating the recycling process of waste collected, the company aims to make it easier for people to reuse waste and reduce the amount of waste that ends up in landfills.
The business model of ScrapUncle, a startup founded by Mukul Chabra, is centered around providing an organized and efficient waste management solution for customers in Delhi and beyond. The company's primary source of revenue comes from collecting and recycling scrap materials from various sources, including homes, offices, and other locations.
ScrapUncle uses a mobile app and website to connect customers with their agents, who are trained and verified to provide quality service. Customers can book a pick-up through the app or website, and the agents will arrive at the designated location to collect the waste. The company uses a state-of-the-art weighing system to provide accurate measurements of the scrap materials, and customers are paid the best value for the materials collected.
One of the key advantages of ScrapUncle's business model is that it automates the recycling process of the waste collected. The company works with recycling partners to ensure that the waste is processed efficiently, reducing the overall impact on the environment.
ScrapUncle also offers its services to businesses and organizations, providing a convenient and efficient way for them to dispose of their waste materials. The company's business model allows for scalability and expansion into new regions, providing a significant opportunity for growth.
The company's monthly sales are approximately 27.5 lakhs, with 10% of the sales coming from B2B business and the rest coming from B2C business. The company has 1950 customers per month and a customer acquisition cost of 110.
The revenue in FY 2020 to 21 was 35 lakhs, and in FY 21 to 22, it was ?1.48 crores, representing a substantial increase in revenue. The projected sales for FY 22 to 23 are ?6 crores, indicating that the company is on a path of rapid growth.
Scrapuncle has a gross margin of 45% from customer to recycler, with a gross margin of 25% after deducting various expenses. The company has been able to provide its collection partners with a substantial earning potential, with partners earning up to 70000 per month, compared to the average earnings of scrap dealers of 30k to 35k per month.
The company's retention rate is between 40% to 50% in a 4 month cycle, indicating that customers are satisfied with the service provided. The company's revenue is allocated towards various expenses, including 5.5 lakhs for collection partners, 15 lacs for customers, 1.25 lakhs for marketing, 3.25 lakhs in team salary, and 1.5 lacs for collection centers.
Scrapuncle appeared on Shark Tanks India to seek funding for their startup. The owner made an initial ask of 60 lakhs for 3% equity at a valuation of 20 crores. During the show, they received multiple offers and counter offers from the sharks.
Veenita offered 30 lakhs for 5% equity and 30 lakhs as debt at 12% interest rate, which was not accepted by the owner. Amit offered 60 lakhs for 10% equity, but the owner did not accept it either. Anupam offered 60 lakhs for 8% equity, which was also not accepted by the owner.
Later on, Amit revised his offer to 60 lakhs for 6% equity, which was matched by Anupam. However, Amit gave a final offer of 60 lakhs for 5% equity, which was accepted by the owner of Scrapuncle. Therefore, the final deal was closed with Amit for 60 lakhs for 5% equity, which means that the startup was valued at 12 crores after the investment.
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