The ongoing season of Shark Tank India recently saw an online Kabadiwala named Scrap Uncle. It picks up scraps like newspapers, plastics, and appliances in Delhi NCR at the best market price and sends them for recycling.
While the smaller towns and the cities have the privilege of calling the recyclers or Kabadiwalas home after listening to their screams on the roads, only sometimes do the residents of the metro cities have them easily available. Moreover, one only sometimes finds the kabadiwals when they need them. Meeting this challenge, Scrap Uncle, an “online Kabadiwala” platform, reaches your doorstep in just one call!
The brand, which also appeared in the second season of the ongoing popular series, ‘Shark Tank India,’ has been receiving applause from the people for their work for their initiative. Based in Delhi, Scrap Uncle, the on-demand junk-selling app, has strived to work towards achieving a sustainable environment. For the very same reason, the owner, Mukul Chhabra, raised a fund of Rs. 60 lakhs from Shark Tank India.
Recycling is the key
Started four years back in Delhi, the brand’s owner has taken into consideration the problems that arise both for the customers and the Kabadiwalas in the unorganized sector, like recycling. In his pitch for the Shark Thank India, he even mentioned that customers are often not given the fair of their scrap since they do not know the correct value range. Further, he asked that if the ‘Kirana shops’ have gone online, why not the kabadiwalas?
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Interested in the business of scrap collectors, Chhabra had begun his research at an early stage. After graduation, he asked a few scrap collectors to move to his apartment to understand what they do better. Fast forward to 2023, when Scrap uncle has completed 22,000 pickups and has sent 14 lakh kg of scrap for recycling in Delhi, which is also their sale mechanism.
Through Scrap Uncle, it becomes convenient for people in Delhi to sell their scraps like newspapers, plastics, metals, electronics, appliances, etc. One can schedule the timing for the pickup, and the workers collect the scrap at your door and pay the specified money. Not only this, but the scrap is also sent for recycling by the brand itself, as mentioned by the founder of Scrap Uncle in the show. In the end, the owner asked for Rs. 60 lakhs for 3% equity.
Chhabra’s business idea and the pitch were impressive enough for the Shark Amit Jain, who offered 5% equity. Amit Jain and Anupam Mittal even fought to invest in the brand. On the other hand, Sugar Cosmetics’ cofounder Vineeta Singh also made the first offer of ₹30 lakhs for a 5% equity stake and ₹30 lakhs in debt at a 12% interest rate, valuing the company at ₹6 crores.
At the end of the discussion, Chhabra agreed to Amit Jain’s offer which was ₹60 lakh for 5% equity while others moved out as they could not see much potential in the business.
Also Read: Shark Tank’s Namita Thapar reveals her regrets, invests in an Agro-tourism start-up
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