Econiture recycles plastic waste to manufacture sustainable furniture. Their products are unique, durable, and strong. Their furniture includes – tables, chairs, benches, stools, etc.
More About Econiture
Econiture solves 2 problems as their furniture is 100% made from recycled plastic.
- Reduce plastic waste
- Reduction of metal mining and deforestation
They have converted around 20,000+ kg of plastic waste into Econiture furniture. Their furniture is available on their website and marketplaces. Their vision is to recycle plastic and transform Econiture into a global sustainable brand.
All founders are childhood friends. Madhur finished his engineering degree at Nagpur University. He worked in Mahindra & Mahindra and then pursued MBA from Welingkar, Bangalore.
He attended a waste management conference there and learned about the US company – Waste Management Inc (a Fortune 500 company). He was inspired by them and researched them. After his MBA, he worked in a waste management company in Ahmedabad.
Madhur returned to his home and discussed the idea of Econiture with his three friends – Ashish, Bhushan, and Roshan. They joined him in this venture.
They choose furniture for two reasons →
First, they realized that no one was making a product using 100% waste materials.
Second, small products weren’t consuming many waste materials. So, they started creating furniture where a single bench of 34 kg could recycle 40 kg of plastic waste.
They break down plastic into smaller pieces instead of converting it into granules. And then convert those small pieces into furniture by melting, hammering, ironing, etc.
Econiture Shark Tank Pitch and Updates
Ashish, Bhushan, Madhur, & Roshan appeared on Shark Tank India Season 2, Episode 14, seeking INR 50 lakhs for 8% equity at a valuation of INR 6.25 crore.
They have delivered over 1800 products to 1200 unique customers in more than 25 Indian cities.
Their shipping cost is high due to larger products. A deckchair priced at INR 18000 costs them INR 5000. But the shipping cost for the same is INR 3000.
Their sales in FY 21-22 were INR 1.3 crore, and furniture contributed to INR 18 lakhs in total sales. Rest comes from their business segregating waste and selling it to recyclers. However, the gross margin in furniture is 65%, while in waste management is 26%.
The month before they appeared on Shark Tank India, their furniture sales were INR 2.5 lakhs. They already sold INR 4.8 lakhs worth of furniture in the month they appeared on Shark Tank India episode.
The waste management business revenue was INR 7.5 lakhs the month before and INR 8 lakhs in the same month. They were projecting INR 1.1 crore from their waste management business and INR 50 lakhs from the furniture.
The bench is priced at INR 15000 on their website and INR 17500 on Amazon. In 15000, 18% (INR 2700) is GST. INR 4500 is the cost of the goods. Logistics is INR 3500. The marketing cost is 2500, and the net margin is 1800 Rs. Their CAC was INR 2.5 lakhs on total sales of INR 15 lakhs
Their sales price for waste management business is INR 15 per kilogram. The purchase cost is INR 8 per kg, and the collection cost is INR 1. And the segregation cost is 5.5 Rupees. The net margin-left is 50 paise.
Aman was the first to pull out of the deal. He felt the business was in an early stage and there would be logistics issues. Namita was the second to get out because she didn’t have the expertise. Peyush decided to get out of the deal too. He, too, felt it was early, and there would be scaling challenges.
Anupam applauded them for transferring from waste management to the furniture business and making 40% of total revenue through it.
But he felt scaling would be a challenge, so he also decided to back out. Amit told them to stay in touch and worked on increasing the number of products. But he also decided to get out.
|Founders||Ashish Modak, Bhushan Boob, Madhur Rathi, & Roshan Pidiyar|
|Business||Furniture from recycled waste|
|Profitability||Business is profitable|
|Shark Tank Episode||Season 2 – Episode 14|
|Asked For||INR 50 lakhs for 8% equity|
Econiture did not get a deal on Shark Tank India Season 2.
Frequently Asked Questions About Econiture
After their appearance on Shark Tank India Season 2, people were trying to find more information about Econiture. Here are some of the frequently asked questions about them.
1. Who Are The Founders of Econiture?
Ashish Modak, Bhushan Boob, Madhur Rathi, and Roshan Pidiyar are the founders of Econiture.
2. Is Econiture profitable?
Yes, Econiture is profitable.
3. Why Sharks did not invest in Econiture?
All sharks felt the business was at an early stage. And there would be scaling challenges. Namita felt she couldn’t provide any value.
4. What happened to Econiture after Shark Tank?
Econiture did not receive any funding on Shark Tank India Season 2. But they got good exposure and appreciation from all the sharks. Different media houses also covered them. We are following them and will share with you as we get more updates.