Indonesia-based waste management platform Waste4Change announced Friday that it has secured a $5 million series A funding round, co-led by AC Ventures and PT Barito Mitra Investama.
The round was joined by Basra Corporation, Paloma Capital, PT Delapan Satu Investa, Living Lab Ventures, SMDV, and Urban Gateway Fund, Waste4Change said in a statement.
According to the statement, Waste4Change will use the fresh capital to further expand its reach and increase waste management capacity up to 100 ton per day in next 18 months and reach more than 2,000 tons per day over the next five years.
This involves integrating more digital technology into the monitoring and recording processes of the waste management flow and automating material recovery facilities.
It will also help Waste4Change to strengthen partnership with the country’s informal solid waste sector, currently powered by scavengers, waste banks, waste stalls, and waste aggregators.
Waste4Change currently has 108 employees and 141 waste management operators. It plans to add an additional 52 people to its team and engage more than 300 informal and SME’s in waste sector (a mixed bag of in- house and external personnel) to continue driving growth.
“Indonesia’s waste management sector is still growing, and we are more than ready to assist in the process,
“With its low 11 percent to 12 percent recycling rate based on Ministry Environment and Forestry data, we know that there are still a lot of valuable materials ready to be brought back into the loop,” said Waste4Change Founder and Chief Executive Officer Mohamad Bijaksana Junerosan.
According to him, people are educating themselves about waste and the environment, new start-ups and businesses related to waste management are emerging, and the government welcomes all stakeholders to take an active part in improving Indonesia,
“Compared to what we experienced in 2014, the market today is getting more mature. We will do whatever we can to provide solutions to every waste management need,” he said.
He also said the firm is working with the best venture capital players in the technology sector, and all of its investors take environmental, social, and governance (ESG) seriously and are willing to share their insights with the firm in creating the best waste management solutions.
“We are more than ready to realize our mutual mission of delivering faster and larger positive impacts on the environment, society, and economy,” he added.
Waste4Change is a waste management platform for companies, individuals, and government agencies in Indonesia.
The firm’s mission since its inception in November 2014 has been to solve waste problems to prevent leakage to the environment and to reduce the amount of waste that ends up in landfills.
The firm is present in 21 Indonesian cities, managing more than 8,000 tons of waste per year.
It has collected waste from 100+ business to business (B2B) clients and 3,450+ household clients. Since 2017, it has grown at a compound annual growth rate (CAGR) of 55.1 percent.
“Waste4Change is a pioneer providing an end- to-end waste management solution. Sustainability is the team’s main focus, with a demonstrated commitment to building a better future for Indonesia,
“The company is proving that it has reached product-market fit and has the potential to scale across the nation. The company’s timing is also ideal, as the Indonesian government wants at least 30 percent reduction at source, with the remaining 70 percent treated by 2025,” said Pandu Sjahrir, Founding Partner at AC Ventures.
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