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Scrapays Technologies Limited

More Than Waste

Nigeria
Market: Internet and IT, Paper, Another
Stage of the project: Operating business

Date of last change: 05.05.2020
Min investment
$  50.000
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Total required
$ 250.000
Rating
equalizer из 1000
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Idea

Scrapays is a fusion of Recycling, Technology and Finance.
She uses technology to facilitate the recovery of recyclable waste in developing nations.
By allowing individuals and businesses sell their scrap and scrapable materials at premium prices through a multi-use self service platform (USSD,Web, Mobile App)

Current Status

On the 20th day of October 2019, Scrapays graduated from Founder Institute (fi.co) accelerator and is now a portfolio company of the Founder Institute.
Within the course of the program the name Scrapays (formally Incycle) was adopted. Incycle emerged top 50 startup in The Africa Netpreneur Prize by Jack Ma Foundation and is published on its official website.
Incycle was also accepted for Orange Corners Nigeria, an initiative of the Kingdom of The Netherlands anchored by the Fate Foundation in Nigeria and we emerged as one of the 5 finalists.
In our testing phase, we have recovered 114320 KG of scrap recyclable materials, generated $43639.38 in revenue.
Our B2B harm is growing at 15% months over the past 3 months and our listing vertical has over 18 projects with an average of $12,000 in revenue awaiting initiation.
We are almost completing a new partnership with the 2 biggest collectors of plastic in our region and the largest collector of Aluminium. We currently have offtaking partnership with 3 mage scale metal foundries in our region.

Market

We operate in the material recovery/collection industry which in itself is a segment of the waste management market with a global size projected to reach $530 billion by 2025. The recovery/collection sector in Nigeria is estimated to be worth over $30billion in conservative value. This does not include the revenue potential from the recycling of these materials which itself poses tremendous business opportunity. The material collection/recovery, market is further segmented by waste material type, service provided and recovery methodology.

Lack of awareness in developing countries and dearth of investments in solid waste management framework impede the growth for waste management industry analysis. The impact of the driving factors is expected to surpass that of the restraints, hence, the market is projected to grow at a CAGR of 6.0% from 2018 to 2025.
About 2,250 tons of plastic waste is generated in Lagos on a daily basis, and which can be recycled, annually, this is 821,250 tons (almost 1 million tons). At USD 500 per ton, if only 500,000 tons of plastic can be recycled annually, it will potentially be a USD 250 million industry. This figure will increase significantly when other parts of Nigeria are factored in, going up as high as 1.5 Billion USD for just plastic in Nigeria.
About 12400 tonnes of metal is recycled by foundries across Nigeria on a daily basis, amounting to about 1.45 Billion Dollar USD.
Nigeria produces about 2.2 million tons a year with 95% production from scrap route as raw material
By a rough summary putting all other recyclable material category type; Scrap Metal, Catton, Paper, Aluminium, Copper, lead, etc. into perspective, the Nigerian recycling and material recovery market is estimated conservatively to be 30 Billion market size.

This growth projection is expected to be driven by, surge in population, growth in urban population, increased amount of waste generated and rise in environmental awareness. In addition to increasingly stringent government norms towards open dumping.

Problem or Opportunity

The narrative that engulfs this very industry that has a controlling and landmark influence on the environment and public health, most especially in Africa, holds no good story to tell, rather than the endemic crises it has caused. Marine animals died in their hundreds, because 90% of plastic waste polluting the oceans are from ten rivers in Africa and Asia.
Here in Nigeria, specifically Lagos, you can barely pass through any junction without being confronted by a hip of stinking and irritating waste, highway and household flooding are common occurrence after rains due to the fact that water ways are always blocked with waste materials.This floods have affected 1.9 million people, destroyed 82,000 houses, displaced 210,000 people and devastated crops and livestock.
It is reported that less than 25% of urban waste in developing countries is collected and disposed off appropriately. The implications of poorly managed waste on health are numerous and depend on the nature of the waste, individuals exposed, duration of exposure and availability of interventions for those exposed.
Due to lack of proper orientation of the general population waste producer responsibility is more or less non-existent.

Solution (product or service)

Scrapays is a fusion of Recycling, Technology and Finance.
She uses technology to facilitate the recovery of recyclable waste in developing nations.
By allowing individuals and businesses sell their scrap and scrapable materials at premium prices through a multi-use self service platform (USSD,Web, Mobile App)
Our USSD and Mobile App allows waste producers get direct cash reward for sorting and giving recyclable waste to our evenly distributed mobile collectors,available via a ping on the app/USSD, or our station based partner collectors (Independent collection Cabins, supermarts, malls eateries, etc).

Competitors

Recycle Point; http://www.recyclepoints.com/
Wecyclers; http://wecyclers.com/
NAK
Trash2cash

Advantages or differentiators

They aggregate from low income persons and give them points, which is redeemable as housing utensil materials.
Technology and Decentralised Collection;
Scrapays uses USSD, Web and App technology empowered decentralized models, which makes collection of recyclables possible in every nook and crannies, individuals with small space are signed-up and empowered to be collectors in their zones, and are compensated in cash based on the material tonnage collected.
Our architecture allows individuals to track their waste production and receive compensation directly as cash on virtually in their bank account, hereby encouraging good waste attitude and saving culture.
Convenience, Simplicity and Efficiency
Scrapay’s Offline and Online platforms(USSD/Mobile App), brings to life the possibility of disposing of your waste at your convenience while you get economic value off it, by using Individual unique ID is generated during registration this even allows your waste to be disposed of in your absence.

Listing (Bulk Scrapping Operation)
For our Listing operations, individuals and Businesses are allowed to List their "Out-Of-Use" recyclable/scrapable machineries, trucks, payloaders, generators, cars, etc. on our Web and Mobile platform. The system automatically gives them a current premium market price for the listed Item, after its description and picture has been uploaded. As a physical evaluation is done, the Lister gets paid within 60 minutes.

Informal Collectors Incorporation;
Scrapays also incorporates the informal material recovery sector, that currently recorvers over 75% of recyclables collected in developing nations in our collection design.
Largest Recyclable Material Collection Range;
Plastics usually are at the center of attention, and that is what almost all our competitors focus their domain on, but what has to do with the highly hazardous electronic waste, who caters for the high economic value of ferrous and nonferrous recyclables? Scrapays aggregate across 6 different material classes.
We also allow for heavy scrapings, E.g abandoned warehouses, old and rusty machines, trucks, cars, etc.

Finance

In our testing phase, we have recovered 114320 KG of scrap recyclable materials, generated $43639.38 in revenue.

Business model

1. Direct Sales
We sell the collected recyclable materials recovered from Households and Commercial businesses to our local and international partners that use them as raw materials for their production. (Revenue Sharing Model- Waste Producer: 45%, Collector: 35% Scrapays: 20%)
2. Listings
We also make money from Listings on our Web and Mobile platform. "Out-Of-Use" scrapable materials like Vessels, Old trucks,caterpillars,cars, equipment, abandoned warehouse machines etc. are listed on our platform for scrapping.
Our operation teams scraps these materials and they are sold off to our industrial partners that use the recyclables as production raw-materials.
Currently we have 15 scrap Listings with an average revenue projection of 35,000 USD, awaiting execution
3. Informal Material Businesses Subscription
Scrapays uses a Pay-as-You-Go capped subscription model, which is dependent on the total material collected by the business within a month, via our Material Recovery Operations automation and Funds Management software

Money will be spent on

Use of Funds: Product development, IOT hardware devices development and installation, operations expenses, team expansion and warehousing

Offer for investor

250,000 USD in SAVE to be converted with a discount

Team or Management

Risks

Governmental Policies: A number of governmental policies need to be reviewed so as to give a broader room and a better enabling environment for the scalability of technology powered recycling solutions.
Partnerships: A number of necessary partnerships with external and international firms and organisations, for the recycling of a few class of recyclables like Electronic waste for example, that can't be recycled locally are needed.
Funding: Adequate funding is needed for setting up of systems and structures that aids effective collection and ultimately the end recycling of the various classes of aggregated recyclables.

Incubation/Acceleration programs accomplishment

Scrapays is a graduate and a portfolio company of Founders Institute (fi.co).
Participation Orange Corners Nigeria, an initiative of the Kingdom of The Netherlands anchored by the Fate Foundation
Participation in Wimbart Office Hours
Participation in acceleration program of Seedspace Dar es Salaam | Seedstars.

Won the competition and other awards

Orange Corners Nigeria, an initiative of the Kingdom of The Netherlands anchored by the Fate Foundation in Nigeria and we emerged as one of the 5 finalists.

Emerged top 50 startup in The Africa Netpreneur Prize by Jack Ma Foundation and is published on its official website
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video