ScrapUncle Lands $2.5M Pre-Series A as Acumen and Orios Back India’s Recycling Revolution

Key Takeaways

1. ScrapUncle, a Delhi-based cleantech startup founded in 2019 by Mukul Chhabra, secured funding co-led by Acumen Fund and Orios Venture Partners.
2. The company raised INR 22 crore (approx. $2.5M) in a pre-Series A round, with additional participation from Upaya Social Ventures, Venture Catalysts, We Founder Circle, Soonicorn Ventures, and angel investor Bharat Jaisinghani.
3. The funds will deepen ScrapUncle’s presence across Delhi NCR, scale operations toward INR 100 crore in annual recurring revenue, and set the stage for multi-city expansion.
4. 300,000+ pickups completed, 20 million+ kg of waste recycled, 350,000+ app downloads, and nearly 200 informal workers empowered.

Quick Recap

ScrapUncle, an on-demand recycling platform digitizing India’s fragmented scrap collection industry, has closed a INR 22 crore (approximately $2.5 million) pre-Series A funding round co-led by Acumen Fund and Orios Venture Partners. The announcement was made via Acumen’s official social media channels, with The Economic Times first reporting the details on January 27, 2026. Additional investors in the round include Upaya Social Ventures, Venture Catalysts, We Founder Circle, Soonicorn Ventures, and angel investor Bharat Jaisinghani.

Digitizing the “Kabadiwala” Economy

ScrapUncle operates a consumer-facing app that enables households and businesses to schedule doorstep pickups of recyclable materials, including e-waste, paper, metals, plastics, textiles, and end-of-life vehicles. Founded in 2019 by Mukul Chhabra, the platform replaces the informal and often exploitative scrap dealer (“kabadiwala”) model with a vertically integrated, tech-driven system.

The company’s technology stack handles digital tagging, logistics, traceability, and inventory management across the entire recycling supply chain. All collected material routes through company-operated warehouses, where waste is segregated, processed, and dispatched to authorized recyclers. This fulfillment-center approach mirrors e-commerce logistics, giving ScrapUncle end-to-end control over quality and compliance.

Paraag Sabhlok, Head of Investments at Acumen India, highlighted the triple-impact model: convenience for consumers, consistent income and dignified conditions for collection partners, and quality scrap supply for recyclers. Meanwhile, Orios partner Sukhmani Bedi noted the startup is “building critical infrastructure for India’s circular economy”.

The fresh capital will fund Delhi NCR expansion, investments in fulfillment infrastructure, groundwork for an in-house e-waste recycling facility, and the eventual launch of the app in other metro cities. ScrapUncle had previously raised INR 3.2 crore in seed funding and INR 60 lakh from Shark Tank India Season 2, where CarDekho co-founder Amit Jain invested for a 5% equity stake.

India’s Recycling Ecosystem Faces Transformation

This funding arrives at a moment when India’s recycling sector is drawing serious investor attention. The country’s waste recycling services market generated $3.1 billion in revenue in 2024 and is projected to reach $6.98 billion by 2033, growing at a 9.6% CAGR. India’s waste plastic recycling market alone reached 11.92 million tons in 2025 and is expected to more than double to 25.88 million tons by 2034.

Government policy is pushing in the same direction. Extended Producer Responsibility (EPR) mandates and tightening ESG disclosure requirements are forcing brands and municipalities to formalize their waste handling chains. This regulatory tailwind creates a natural customer pipeline for platforms like ScrapUncle that offer transparency and traceability.​

Despite the opportunity, the market remains overwhelmingly unorganized. The vast majority of India’s scrap collection still happens through informal channels with inconsistent pricing, no traceability, and limited compliance. That fragmentation is precisely the gap cleantech startups are racing to fill.

Competitive Landscape

ScrapUncle leads in vertical integration and end-to-end supply chain control, which gives it an edge in traceability and service consistency. The Kabadiwala, while older and present in more cities, operates a lighter marketplace model and has carved a strong niche in B2B circular economy solutions and EPR compliance for brands.

Techno Trenz’s Takeaway

I think this is a big deal for India’s cleantech space. In my experience covering startup funding, the combination of Acumen (impact-focused) and Orios (consumer-tech-focused) co-leading a round sends a clear signal: ScrapUncle is being positioned as both a social impact play and a scalable consumer business. That dual validation is rare at the pre-Series A stage and could fast-track follow-on interest.

What I find most compelling is ScrapUncle’s vertically integrated C2B model. Most competitors rely on a marketplace approach, connecting users to scrap dealers. ScrapUncle controls the full chain from pickup to recycler, which unlocks better unit economics and data-driven pricing over time. With 300,000+ pickups and 20 million kg recycled, this is no longer a pitch deck promise.