Indonesian waste management platform Waste4change snags US$5m Series A funding

WASTE4CHANGE has secured a US$5 million Series A funding round led by venture capital firm, AC Ventures and the investment arm of mining company Barito Mitra, Barito Mitra Investama.

Other investors in the round include Basra Corporation, Paloma Capital, Living Lab Ventures and Urban Gateway Fund, among others.

The startup is riding on the government’s Indonesia Bersih Sampah 2025 – Indonesia Clean from Waste – programme. This initiative is targeting a 30 per cent reduction of waste from source which includes recycling.

Waste4change is currently present in 21 Indonesian cities, collecting over 8,000 tonnes of waste a year. It has over 100 business clients and over 3,400 household clients. Customers sort their waste according to stipulated guidelines, and either drop it off at a Waste4Change point or have a team collect the waste directly.

“Indonesia’s waste management sector is still growing, and we are more than ready to assist in the process. With its low 11-12 per cent recycling rate based on Ministry Environment and Forestry data, we know that there are still a lot of valuable materials ready to be brought back into the loop,” said Mohamad Bijaksana Junerosano, founder and chief executive officer, Waste4change.

The funds will be used to expand the startup’s reach and increase its waste management capacity to 100 tonnes per day in the next 18 months. The target is to reach over 2,000 tonnes per day over the next five years. Investments will be made in digital technologies to monitor and record waste management flow, and automate material recovery facilities.

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There are also plans to add an additional 52 employees to its current team of 108 employees and 141 waste management operators.

“The company is proving that it has reached product-market fit and has the potential to scale across the nation. The company’s timing is also ideal, as the Indonesian government wants at least 30 per cent reduction at source, with the remaining 70 per cent treated by 2025,” said Pandu Sjahrir, founding partner, AC Ventures.