ScrapUncle ₹60 Lakhs for 5% Equity Win on Shark Tank India

ScrapUncle, a startup based in Delhi, was created by Mukul Chhabra to innovate the recycling of scrap materials using its user-friendly website and app. The company is dedicated to transforming how India manages recyclable waste by sending well-trained agents to collect scrap from households and businesses. They ensure precise weighing and offer fair compensation for the materials, promoting the concept of responsible recycling.

Click here to visit their official website: ScrapUncle

They make their services accessible through their website and app, utilizing trained and verified agents who collect scrap accurately to provide the best value to customers. By automating the recycling process, they can conveniently pick up scrap from various locations. Over the past two years, ScrapUncle has completed more than 22,000 pickups, recycling over 14 lakh kilograms of scrap solely from the Delhi NCR region. With a gross margin of 45% from customer to recycler, the company has significantly improved the monthly earnings of scrap dealers, from ₹35,000 to ₹70,000.

To facilitate their growth, ScrapUncle secured an investment of ₹60 lakh for a 3% stake in the company. Additionally, they received a grant of ₹23 lakh from Columbia University without giving up any equity. These achievements highlight ScrapUncle’s commitment to ethical waste management and their mission to revolutionize the recycling industry in India.

Related: Geeani Agritech ₹75 Lakhs for 7.5% Equity Win on Shark Tank India

ScrapUncle, a startup from Delhi, was created by Mukul Chhabra and has changed how scrap is recycled using its website and app. It was started in 2019 by Chhabra, who graduated from Indraprastha Institute of Information Technology. He got the idea for ScrapUncle after his previous experience co-founding DroneMed, a startup that made unmanned aerial vehicles. Even though DroneMed received praise and financial support, it had to shut down in the end.

Their monthly sales amount to ₹27.5 lakh, with a revenue of ₹35 lakh in their first year (FY20-21), followed by an impressive ₹1.48 crores in FY21-22. The company is aiming to achieve sales of ₹6 crores by the end of the current year. Most of their sales, around 90%, come from individual customers (B2C), while the remainder comes from businesses.

Their Customer Acquisition Cost (CAC) stands at ₹110, and they have a 50% customer retention rate over a 4-month cycle. Despite their monthly sales of ₹27.5 lakh, the company is already breaking even. These figures underscore the company’s steady growth and financial stability as it continues to expand its customer base and increase its revenue.

Aman, the first person, decides to not invest in the business because he feels that there are too many challenges and the company needs a lot of work. Following this, Namita, another potential investor, also decides not to invest because she is unsure of how she could contribute to the business.

Next, Vineeta makes an offer to invest ₹30 lakh for a 5% stake in the business, with the rest of the amount being provided as a loan at 12% interest. Then, Amit steps in with an offer of ₹60 lakh for a 10% share of the company. Anupam also expresses an interest in buying 8% of the company. Subsequently, Amit revises his offer and reduces his stake to 7% after hearing about Anupam’s offer. In response, Anupam further lowers his offer to 6%.

Amit then makes a final offer of ₹60 lakh for a 5% share of the company, which is accepted by Mukul without any hesitation. This sequence of events captures the negotiations and offers made by different investors as they consider investing in the business.

Our investigation into ScrapUncle has confirmed that their deal with Amit on Shark Tank India was successfully completed post the show airing, and the business is doing very well. Mukul disclosed on a podcast in February 2023 that they now handle 150-200 tons of waste every month, generating around ₹35 lakh in revenue monthly. By July 2024, the company is still operational and flourishing. Their website indicates partnerships with major Indian corporations like Godrej and TATA. Although precise financial details are not yet public, we will provide updates as more information becomes available.