Aavishkaar and Asha Impact Invest Rs 44 Cr in Waste Management Firm Nepra
Aavishkaar, an impact fund advisory firm and part of the Aavishkaar-Intellecap Group, and Asha Impact, an impact investment and policy advocacy platform for Indian business leaders set up by Vikram Gandhi and Pramod Bhasin, announced an investment of Rs. 44 crore as part of the Series-B round in Nepra Resource Management Private Limited, an Ahmedabad-based waste aggregation and processing company that operates under the ‘Let’s Recycle’ brand.
India generates more than one lac metric tonnes of solid waste every day[1]. The sector has been plagued with poor segregation practices, which result in overfilling of landfills and loss of valuable recyclable waste including paper, plastic, cardboard and glass. With initiatives such as the Swachh Bharat Abhiyan, regulatory push on solid waste management regulations and Extended Producer Responsibility, there is large demand for organised waste management enterprises who can process at scale and provide reliable waste management services.
Nepra has been working towards addressing these challenges since 2013 and has built an organized dry waste supply chain that connects waste generators and collectors to recyclers while efficiently integrating over 1,800 waste pickers into the formal economy. The company has leveraged advanced technology for processing of waste and has developed a model that is modular, scalable and highly replicable. It currently has a capacity of processing 100 tonnes of waste per day in Ahmedabad and will be extending its geographical presence to new cities with the fundraise.
Speaking on the funding, Sandeep Patel, CEO, NEPRA said, “Our aim is to establish “Let’s Recycle – NEPRA” as the leader and the “go-to” company for large scale Dry Waste Management. We have seen impressive growth in Ahmedabad and this new round of funding from Aavishkaar and Asha Impact will help us expand our operations to 3 more cities and help us to build the foundation for expansion across the country over the next 5 years. ”
Anurag Agrawal, Partner, Aavishkaar Venture Management Services, said, “Nepra exemplifies the core investment philosophy of Aavishkaar where scale, sustainability and impact go hand in hand. We built a thesis around an investment in waste management, backed the founders of Nepra at a very nascent stage and have been continuously investing in this company since 2013. Nepra has clearly demonstrated the ability to create scale with sound economics while creating massive impact on the ground.”
Commenting on this investment, Pramod Bhasin and Vikram Gandhi, Founders, Asha Impact, said, “The government’s commitment to sanitation under the Swachh Bharat Mission is supported by an increasingly favourable policy environment towards waste management in our major cities. With these tailwinds, NEPRA is well positioned given its unique tech enabled model to both create meaningful social and environmental impact while also generating market based returns for its investors.”
Founded by Sandeep Patel, Dhrumin Patel & Ravi Patel in 2011, NEPRA brings transparency and scalability in the highly unorganized Indian waste management sector, benefiting bottom of pyramid and improving resource efficiency and promoting Circular Economy. The company had raised its first external funding of $2.5 million from Aavishkaar in January 2013.
Another waste management company Ramky Enviro Engineers Ltd which is based out in Hyderabad, is also looking to raise Rs 4,000 croore from private equity giant KKR for 60% stake in the company.
