Plastic recycling start-up Banyan Nation raises ₹6 cr; Artha Capital among investors

From Silicon Valley to local alleys, Mani Vajipey and Raj Madangopal have come a long way in their bid to address the problem of plastic disposal in urban areas.

The duo has come out with innovative ways to recycle, and use technology and sustainable business practices to bring local kabadiwallas (rag-pickers) on to the supply chain.

Read: CleanTech Reuse and recycle: Turning plastics to fuel

Banyan Nation, the start-up founded by them, recently expanded its manufacturing facility located at Patancheru, a pollution hotbed, about 35 km from here.

Two funding rounds Barely into its second year of inception, Banyan has received funding twice — $150,000 earlier and $800,000 recently (together about ₹6 crore).

The second investment, from Artha Capital, will be used to fuel the company’s expansion plans.

“We could have settled for a comfortable tech job in the US or taken the tougher route to bring about a change in the local areas we live in,” said Vajipey, who serves Banyan as CEO.

“Of interest were energy conservation, recycling and the problem of urban waste management. We chose to take up plastic recycling, a major urban menace.”

“The journey so far has been engaging and continues to be a question of survival. But we are certain we will succeed if we continue to do what we like on a mission mode.

“Having taken over an ailing recycling unit, we have recently expanded it from 35 tonnes per month to 300 tonnes per month. This has added scale,” he added.

While the company has not really “invented” anything, it seeks to do things differently.

For organisations that are particular about using only virgin plastic for their products or packaging, Banyan seeks to give a viable and good quality recycled alternative.

It sources waste materials from aggregators, sorts and grades the plastic waste, and manages a treatment and recycling process that produces higher-quality plastic pellets with a longer life span than pellets produced by the majority of recycling companies.

Mentored by KKR The company, which is also mentored and backed by global investment firm KKR, Impact Investment Exchange and Shujog, expects to scale up the business by improving the supply chain in waste recycling.

It is in talks with a network of brands in the FMCG, pharma and other sectors to offer then “holistic” recycling solutions.

Said Artha Capital co-founder Jaideep Khanna: “The consequences of our collective inaction seem negligible now, but over time will be devastating to the environment.

“We must each do our bit to stem the tide. Banyan, by laying the foundation for a formal recycling system, is doing just that.”