In the first half of 2023, Rekosistem increased waste productivity to 523% for recycling, upcycling, and waste-to-energy.
Heaptalk, Jakarta — A climate-tech startup based in Indonesia, Rekosistem, has secured a new investment worth US$5 million (around Rp75 billion), led by Skystar Capital. Multiple strategic investors, including East Ventures and Provident, participate in this investment. By seizing this fresh injection, this climate-tech company will scale up its waste management capacity to over 20,000 Metric Tons of waste monthly in the coming two years.
To achieve its goal, the company plans to execute numerous strategic actions, spanning a waste management system development, expanding an Internet of Things (IoT) and Machine Learning implementation, and human resources allocation for the recycling technology enhancement. Also, the team will improve the company’s material recovery facility, namely Reko Waste Station and Reko Hub.
The CEO and Co-Founder of Rekosistem, Ernest Layman, revealed, “At Rekosistem, we are determined to build a business adept at facing the three most significant challenges facing businesses in the current generation which are the 3Ps, covering Profit, People, and Planet. Through circular economy implementation in the existing waste supply chain, our products and services aim to make responsible production and consumption accessible to everyone,”
Through its plans arranged, the startup targets to process more than 70% of waste types into recycled materials and renewable resources, broaden waste management coverage to more cities, and provide an Extended Producer Responsibility program to encourage business owners to take responsibility for their business’s environmental impact. The Rekosistem team will involve about 5,000 Indonesian workers and business partners in its digital ecosystem to realize this target.
Leading the investment into this startup, the Managing Partner of Skystar Capital, Abraham Hidayat, observed the waste management sector offers numerous growth opportunities for players who can effectively operate in this fragmented industry. With its expertise and deep experience in this sector, Abraham viewed that Rekosistem is well-positioned to address several fundamental issues in this field and leverage many untapped opportunities.
During its operations, Rekosistem has continued to evolve. Hitherto, this startup has over 300 waste workers and business partners, 10 Reko Hubs, and 33 Reko Waste Stations. On the other hand, the startup has also served over 100 business customers, and 20,000 households, which delivers the company to reach 100,000 people to manage more than 2,500 Metrics Tons of waste monthly.
Rekosistem’s performance over the last 12 months achieved a seven-fold annual revenue increase. According to the company, it has also saved about 12,615 Metric Tons of CO2 by replacing new materials with recycled materials. In the first half of 2023, Rekosistem has successfully increased waste productivity to 523% for recycling, upcycling, and waste-to-energy while also increasing waste workers’ income by 117%.
The business model of Rekosistem
Launched in 2021, Rekosistem utilizes integrated waste management using IoT technology and Machine Learning to simplify a waste collection efficiency of 49%. The company implements B2B and B2B2C business models to reach businesses and end consumers through mobile and web applications.
“The B2B scheme is the appropriate approach because the waste supply chain issue in the country is systematic. This business model allows us to transform the current fragmented waste supply chain into a more circular ecosystem efficiently and optimally,” affirmed Rekosistem’s COO and Co-Founder, Joshua Valentino.
Furthermore, the app offer responsible waste management services for residences, buildings, and local governments in partnership with the stakeholders in waste management. Through the flow, waste can be efficiently collected and transported to processing centers to be processed into valuable materials and resources in factories, reducing the accumulation of waste in landfills.
Rekosistem’s products, including Reko Waste Station and Reko Hub, serve as collection points and material recovery facilities that efficiently process mixed waste into high-quality raw materials. These facilities are equipped with IoT sensors, which enable real-time data collection and monitoring. Integration with Machine Learning technology improves system analysis and optimization to pay workers based on their performance, and machine usage can be optimized to reach material production targets from waste.
“We have witnessed positive progress and developments brought by Ernest and the team, and we are excited to continue collaborating with Rekosistem to bring positive impacts in the waste management industry and contribute to the circular economy in Indonesia,” said Avina Sugiarto, Partner at East Ventures.
