ScrapUncle is an innovative app made in India that brings trained professionals to your home to pick up the scraps and ensures they are recycled correctly.
Mukul Chabra is the founder of this company who came up with this amazing idea of organizing the industry of scrap collectors and bringing all the verified workers under the same roof.
The goal of ScrapUncle is to ensure the recycling process becomes more organized and the workers who pick up the scraps have a regular job.
More About ScrapUncle
The business was in operation for two years before its appearance on Shark Tank. According to Mukul, in the past two years, they have sent more than 14 lac kilos of scraps for recycling. His vision was to make the company India’s largest online recycling platform.
The unique features of the ScrapUncle include the following-
- They have trained and verified agents
- Weighs your crap with 100% accuracy
- Provides the best value for all your scraps according to the market standards
- Automates the recycling process
- Collects scraps from multiple sources like offices and industries apart from households
ScrapUncle Shark Tank Pitch and Updates
The team of ScrapUncle appeared on Shark Tank India Season 2 Episode 25 and demanded INR 60 lakhs for a 3% equity at a valuation of 20 crores.
After the initial pitch, Anupam was interested and asked about the value chain and how every person in the process is making money.
Here, Mukesha explained how the scraps are collected from the customers and then reach the recycler through various steps, where it is all about money and power. At this stage, Amit Jain was interested in how he was making profits, to which he replied that starting from the customer till the last stage, that is, the recycler, he could make a 45% gross margin with no profit or loss.
After hearing the process, Vineeta was interested in learning how much the average scrap collector made monthly. Mukesh said that they were primarily making INR 30-35000 per month, but after partnering with ScrapUncle, they could make INR 60-70000 per month.
After learning about the entire process, Aman was more interested in the numbers. Mukesh gave a detailed reply stating that their current monthly sales are INR 27. 5 lacs.
The company made INR 35 lacs in FY 20-21 and INR 1.48 crores annually in FY 21-22, and this year they are expecting to close at INR 6 crores.
Aman was the first to make a decision, and he opted out of the deal, stating that there was still a lot of work to be done. However, Vineeta was very impressed by the potential of the business, and she offered INR 30 lakhs at 5% equity and INR 30 lakhs as debt for 12% interest at a valuation of INR 6 crore.
Amit Jain was more inclined towards the car scrapping business and believed it itself to be a billion-dollar industry. So he offered INR 60 lacs for 10% of the company matching Vineeta’s valuation of INR 6 crore.
Immediately after Amit’s offer, Anupam offered the same amount but for 8.75% of the company valuing it at INR 7.5 crore. This created a war-like situation between both of them, and Amit immediately came down to offer INR 60 lacs for 7%, hearing which Anupam offered INR 60 lacs for 6%.
Finally, Amit offered INR 60 lacs for 5% valuing it at INR 12 crores, but unfortunately, Anupam was out of the deal stating Mukesh took way too long to respond.
Mukesh did not lose a moment to give a container offer and took Amit’s offer at a valuation of INR 12 crores for 5%.
|Business||Organizing The Recycling and Scrap Picking Sector|
|Shark Tank Episode||Season 2 – Episode 25|
|Asked For||INR 60 lakhs for 3% equity|
|Deal||Closed at INR 12 crores for 5%.|
|Sharks Invested||Amit Jain|
|Valuation Given||INR 12 crores|
ScrapUncle got a deal of INR 60 lakhs for 5% equity from Amit Jain at a valuation of INR 12 crore.
Frequently Asked Questions About ScrapUncle
After their appearance on Shark Tank India Season 2, people were trying to find more information about ScrapUncle. Here are some of the frequently asked questions about them.
1. Who Is The Founder of ScrapUncle?
Mukesh Chabra is the founder of ScrapUncle. He is a B.ech engineer from IIIT.
2. Is ScrapUncle profitable?
ScrapUncle is a newly launched company, but they are at a no loss no profit stage currently.
3. Why did other Sharks not invest in ScrapUncle?
Aman was not convinced about his operational methods and Namita thought she could not add much value to the company. Hence both of them were out.
4. What happened to ScrapUncle after Shark Tank?
ScrapUncle got a deal of INR 60 lakhs from Amit Jain. Amit said that he foresees the car scrapping business is going to be a billion-dollar industry in the coming years and he will be able to help with that.
However, we’re following them for more updates and shall notify you as soon as we get more updates.