Rekosistem Raises Funding Worth 75 Billion Rupiah Led by Skystar Capital [UPDATED]
This funding was also supported by East Ventures, Provident and other investors
Startups climate-tech Rekosistem announced that it has raised US$5 million or more than Rp75 billion in funding led by Skystar Capital, followed by East Ventures, Provident and other investors. It is planned that these fresh funds will be focused on improving the Rekosistem waste management system to more than 20 thousand metric tons of waste per month in the next 2 years.
To realize this target, Rekosistem is intensifying a series of strategic steps, starting from developing a waste management system, as well as expanding the application of technology Internet of Things (IoT) and machine learning In addition, Rekosistem will also develop recycling technology and improve material recovery facilities, namely the Reko Waste Station and Hub.
Through this strategic step, Rekosistem will process more than 70% of waste types, become recycled raw materials and new renewable energy, expand to more cities, and provide an Extended Producer Responsibility program that encourages entrepreneurs to be responsible for the impact of their business on the environment.
Apart from targeting to improve its waste management system, Rekosistem also plans to involve more than 5 thousand workers and business partners into its digital ecosystem.
Founded in 2018 by Ernest Layman and Joshua Valentino, Rekosistem encourages the implementation of a circular economy in the waste supply chain with an integrated waste management system using Internet of Things (IoT) and Machine Learning. Through this solution, the company wants to simplify and increase waste collection efficiency by 49%.
Co-Founder and CEO of Rekosistem Ernest Layman in an official statement expressed his determination to build a business that is able to face the three biggest challenges in the current generation of businesses related to 3P, namely profit (profit), people (humans), and planets.
"Through the implementation of a circular economy in the waste management supply chain, the products and services we offer aim to make responsible production and consumption applicable to businesses and everyone," he said.
In reaching businesses and end consumers, Rekosistem uses B2B and B2B2C business models through applications mobile devices and web. There are two issues that Rekosistem wants to solve, namely the waste management process which is still informal, and increasing value in the waste supply chain.
After five years of operation, Rekosistem has succeeded in increasing the productivity of waste into materials by 523% for recycling, upcycling and waste-based energy sources. In addition, it also increases the income of garbage workers by 117%.
Currently, the Rekosistem ecosystem consists of 300 waste workers and business partners, 10 Reko Hubs, and 33 Reko Waste Stations. The company has also succeeded in attracting 100 business customers and 20 thousand household customers, reaching more than 100 thousand people and already managing more than 2.500 metric tons of waste per month.
Startups waste management in Indonesia
The issue of waste management is still a topic that is hotly discussed in society. Starting from the process that is still informal, the lack of law enforcement for illegal actions that damage the environment, and the budget for green development, each has its own level of urgency.
According to data from the National Waste Management Information System (SIPSN) of the Ministry of Environment and Forestry (KLHK), Indonesia produces 19,45 million tonnes of rubbish throughout 2022. This has encouraged the presence of a number of startups that focus on working on waste management issues.
In addition to the Rekosystem, there is also money, a digital service developer that facilitates recycling, allows people to request garbage collection at their homes and get reward. This startup is also included as one of the graduates Google for Startup Accelerator, the first Google accelerator program held in Indonesia.
In addition, Waste4Change, which was founded in 2014, adopts environmentally sound and responsible waste management. Its mission is to increase recycling rates by establishing standardization in waste collection and recycling procedures, as well as improving operator welfare and safety.
The company has received series A funding led by AC Ventures and PT Barito Mitra Investama worth more than IDR 76 billion. Not long ago, a well-known Indonesian actress Maya Moon also joined the ranks of investors. Waste4Change is also intensifying investment cooperation with various parties to encourage technology-based waste management projects.
One more startup greentech implementing a technology-based circular economy is OCTOPUS, an aggregator platform that can be utilized by related industries to earn recycling trash from scavengers and collectors. The company is known to have worked with more than 1700 waste banks and 14.600 trained and verified scavengers.
The more players targeting the issue of waste management encourages the involvement of many parties to aggressively address this issue. Apart from that, waste management solutions can also be developed into many things, as was done Rebricks by processing plastic waste into building materials.