Scrapays, a Nigerian Cleantech Startup, Fusing Recycling, Technology and Finance entity, has raised some funding from the Catalyst Fund, a global accelerator for inclusive tech startups.
Founded in 2019 by Boluwatife Arewa and Tope Sulaimon, Scrapays enables the proper disposal of waste by creating and empowering a network of micro-enterprises that collect, sort, and store recyclables.
It addresses the challenge of waste generation by introducing an inventive model that empowers individuals and small businesses to establish mini-waste enterprises. This resource-efficient approach provides these enterprises with essential technology and materials, manages logistics and waste aggregation, and sells the collected waste to processors and official recyclers.
Consequently, this aids small-scale collectors and households in supplementing their incomes while preventing the environmental hazards associated with litter. Alongside tools for inventory management, small enterprises also benefit from access to performance-based working capital loans.
Scrapays innovatively employs smart logistics to aggregate recyclable materials from Nigeria’s informal waste sector, providing an asset-light and decentralized collection method for scalability and affordability. Through a plug-and-play model, Scrapays enables individuals to initiate their recyclable waste collection businesses, offering embedded financial support for efficiency and widespread economic inclusion.
Utilizing hyperlocal agents equipped with a smartphone app and smart scales, Scrapays connects them with waste producers, facilitates transportation, provides working capital loans, and manages sales to corporate recycling partners, minimizing capital expenditure compared to traditional alternatives. The model extends waste management to household and small business waste streams often overlooked by formal systems, utilizing software coordination for responsive material routing based on real-time data.
To date, more than 1,900 individuals have registered as agents on the platform to establish and oversee successful recycling enterprises. These agents generate income by purchasing recyclable waste from households and small businesses, subsequently selling it to formal recyclers and processors through Scrapays. The platform facilitates the involvement of individuals with limited skills and access to capital as agents, providing them with essential tools such as scales, an app, and working capital to operate their businesses. Scrapays also manages transportation logistics and secures offtake agreements with prominent manufacturers, streamlining the operational process for these agents.
Scrapays distinguishes itself by integrating, rather than competing with, the informal sector through technology. The approach offers opportunities for carbon credits, subscription models, and advanced analytics, contributing to future value creation. Ultimately, Scrapays productizes and coordinates the existing waste ecosystem to meet urban material recovery needs responsively, fostering household inclusion and youth livelihoods on a large scale.
Maxime Bayen on his Linked post, expressed his delight that the Catalyst Fund provide some funding to Scrapays. He also added that “beyond our investment, our venture acceleration team lead by Javier Linares with the support of Kevin Rejko on the tech front and the broader team, is already working with Scrapays team since several weeks.
