Waste paper collection and recycling startup Pastiwala. com has raised $4 million (Rs 24.8 crore) from Agnus Capital, a private equity fund of Strides Arcolab's promoter Arun Kumar.
A top executive at Vadodarabased Sort India Enviro Solutions, which owns Pastiwala-.com, said the startup plans to raise another $20-25 million by the next quarter. "The first round of funds will be used to establish presence across Gujarat to set-up fully automatic material recycling facilities," said Aashutosh Magdum, co-founder of Sort India Enviro Solutions. "Next fund raising will be of $20-$25 million by next quarter."
The company has mandated Artifice Advisors Pvt Ltd for the second round of fund raising, which would be used to expand presence to cities such as Bengaluru, Pune, Mangalore, Nagpur, Jaipur, Ajmer, Indore and Bhopal.
Pastiwala.com is a five-year-old startup that handles around 300 tonne of recovered paper every day. It runs a fleet of over 150 vehicles in seven cities of Gujarat.
The company has six material recycling facilities that can handle 56,000 tonne of recovered paper and plastic every year.
According to some estimates, India's recovered paper industry is worth Rs 2,000 crore and demand of paper mills is expected to grow at a compound annual growth rate (CAGR) of 9.6% till 2017.
Pastiwala.com has fully integrated waste collection from doorstep to final sales booking. Its waste collection drivers are armed with tablets, which allows them to issue invoice to clients on email. The company reported a turnover of Rs 25 crore and a profit of Rs 1 crore in the year ended March 2014. In 2014-15, sales stood at Rs 68 crore with a profit of Rs 5 crore. It expects to cross Rs 220 crore in turnover this fiscal.