One of the leading tech-based waste management service start-ups Rekosistem has successfully received undisclosed seed funding through Bali Investment Club’s tailored packages in order to actively support the improvement the service needs to flourish in Indonesia.
The investment will be used to back up Rekosistem’s waste management service in Jakarta and Surabaya, and also their expansion plan to other capital cities in Java-Bali Islands. The fund specifically allocates for scaling the uptake of residential areas, public users and businesses, with the target to achieve over 10x monthly revenue growth, manage more than 50 metric tons of waste per day, and increase its Redrop locations and Repickup coverages by enlarging partnerships as well as advancing its waste data mapping software and machine learning. Lastly, the budget will be used to build capable teams to strengthen the growth of the platform across Indonesia by strengthening their Tech Team, R&D Team, and Product Team.
There are around 68 million tons of waste produced in Indonesia each year, but only 7% of total waste is successfully recycled and composted. Even though there are more than 2,000,000 individual waste workers around, most work with informal contracts and are therefore paid unjustly in the average of USD 100-150 per worker per month. Rekosistem seeks to change this by providing fair compensation to all workers within its ecosystem. Along with the ever-growing population of Indonesia, comes the waste production rate per capita at 0.7 kg per day per person and it keeps scaling up. A proper waste management service is a crucial component needed to protect the environment and the health and safety of the population.
How are they able to do it in such a low return industry? Rekosistem can accomplish this by standardising control of the chain, improving productivity of waste workers and generating revenue through streams of waste management service, sales of waste, lastly plastic credit and waste accounting. As Rekosistem steadily flourished from their first waste research and project with Universitas Katolik Parahyangan (Ernest and Joshua’s Alma mater) back in 2019, the MVP (minimum viable product) was tested to the market in July 2020, and the apps and features were launched on 21st February 2021. Since the launch, the business has grown exponentially at 30% month-over-month, increased their capacity to manage over 1,000 tons of waste per month, and exploded their annual revenue growth by 12x in 2021. This includes more than 25 commercial big names such as CitraLand Surabaya, MRT Jakarta, and P&G including public places managed regularly, and over 11,000 houses regular pick-ups and 1,500 individual Redrop transactions managed monthly.
BIC’s team has looked at many waste management startups last year, and Rekosistem is with no doubt the best we have reviewed.
As the general populace is increasing and, correspondingly, the amount of waste is expanding as well, we pollute the environment by producing various products. Certain types of waste can be quite harmful and can contaminate the environment, therefore the existence of a public accessible platform of waste management service is essential for the prosperity of Indonesia.
Bali Investment Club is dedicated to improving the wellbeing of Indonesia and constantly looks for players that share the same values. We believe that by tackling impact-related issues, we can create greater shared value for all and promote a sustainable future for the next generation.
Join the Club today.