Shark Tank ScrapUncle
In this episode of Shark Tank India Scrapuncle, a modern-day Kabadiwala presents the pitch. Will the founder get a deal from the sharks? To know about the deal read till the end.
| Company name | Scrapuncle |
| Founders | Mukul Chabra |
| Ask | ₹60 lakhs for 3% equity |
Scrapuncle Founder
Mukul Chabra is the founder of the company and he hails from Delhi. He has completed his b.tech from IIIT. Previously he had a startup drone business. He was keenly interested in robotics since childhood and his uncle was a scrap dealer. He used to find electronic components in uncle’s junkyard and he loved doing this. When he moved to Delhi he found that there is no such organized sector for scrap hence he did research and started this business.
About the company Scrapuncle
Rag pickers and common people face some problems such as how to reuse waste, calling them in time, proper ratings, etc. The reason for this problem is that this sector is being unorganized and neglected. But these ragpickers can come online too just like other services. ScrapeUncle is a modern day ragpicker. Services are available across their own website and app.
Some features include,
- Trained and verified agent
- Weighs scrap with 100% accuracy
- Provides best value against scrape
- Automates the recycling process of waste collected
- Collects scrape from various sources such as home, office etc.
ScrapUncle has completed more than 22,000 pickups in 2 years from Delhi NCR region and out of this 14 lakhs kilograms of scrap has been sent for recycling. His vision is to make scrap uncle India’s biggest online app. Their business increased four times during covid period.
Normal cycle is -The normal rag pickers come to our home, collect the scrap and sell it to the aggregator. Then comes the big aggregator who classifies and collects the scrap. Then comes the money power people who take who makes the most profit.
He started in August 2020.
Ask by the Owner Scrapuncle
The owner made an ask of 60 lakhs for 3% equity of the company at a valuation of 20 crores.
Scrapuncle Sales And Revenue
Gross margin from customer to recycler is 45%. The Scrap dealer earns 30k to 35k per month. But now the ScrapUncle collection partner earns up to 70000 per month. Delhi scrap market size is around 2 billion. Monthly sales is 27.5 lakhs. The revenue in FY 2020 to 21 is 35 lakhs and in FY 21 to 22 it is ₹1.48 crores, in FY 22 to 23 projected sales is ₹6 crores. Out of total sales 10% comes from B2B business and the rest comes from B2C business. B2C sales come from 1950 customers per month. Customer acquisition cost is 110. Retention rate is 40% to 50% in a 4 month cycle. Out of 27.7 lakh sales 5.5 lakhs go to collection partners, 15 lacs goes to customers, 1.25 lakhs for marketing, 3.25 lakhs in team salary, 1.5 lacs to collection centers. Gross margin is 25%.
Offers and counter offers
Veenita give an offer of 30 lakhs for 5% equity and 30 lacs at debt at 12% interest rate.
Amit gave an offer of 60 lakhs for 10% equity.
Anupam gave an offer of 60 lacs for 8% equity.
Amit revised his offer of 60 lacs for 6% equity. Anupam matches this offer.
Amit gave a final offer of 60 lakhs for 5% equity.
Scrapuncle Final deal
The final deal was closed with Amit for 60 lakhs for 5% equity.