Here Are 3 Lucky Startups That Bagged Funding From Risers Accelerator
Risers Accelerator has funded three startups, Cosmeto Food, Zeleno, and Playtoome, with a total investment of around Rs 11 Crore. Risers Accelerator is a conglomerate of 35 individuals based out of Delhi which is aggressively promoting startups with good business potential.
Accelerator holds 10 percent equity in Zeleno. While, in Cosmeto Food Organic Pvt Risers Accelerator has funded Rs 2 crores for product distribution and it holds 10 percent equity in the company. Moreover, Playtoome will get the next round of funding from Risers of Rs 4 crore.
Apart from this, Accelerator is also in talks with ‘Just Happy’ as well, which is in the retail segment of household gifts stationery.
Speaking on the development, Pravin Khandelwal, Director, Leadership & Motivation, Risers Accelerator said, “Our focus is to accelerate the companies that have a noble cause attached to it along with the business part. With the latest order by the Indian Railways of 500 vending machines, Zeleno is on the right track and hopefully, the target of reaching every metro city by the end of this financial year will be achieved. We believe that the initiative will stand as the main pillar in the success of ‘Swachh Bharat Abhiyan’, a campaign by the Government of India.”
Risers Accelerator supported Zeleno, a startup dealing in Reverse Vending machines, recently got a contract through Rail India Technical and Economic Services (RITES) for Central Railways of 500 machines. Zeleno was started three years back by an ISB Hyderabad trio towards furthering the Swachh Bharat Abhiyan. Valued at Rs 50 crore, Zeleno has been successfully installing the machines in New Delhi and Lucknow. Piloting with these places, the company has already come up with a blueprint of places across India where the machines will be installed. Risers Accelerator holds 10 percent equity in the company.
Challenges a cause-based startup faces
“A new idea always faces apprehensions and these doubts increases if a cause is attached to the idea. People start talking about the viability of the project and ROI, etc. The need of the hour is that the incubators and accelerators should come forward to support these startups that have the potential to safeguard the future of the earth. We do understand that business is important and all of these startups are here to do that,” said Prateek Mittal, Co-founder of Zeleno when asked about the challenges a cause-based startup faces.
What number says?
The idea is good as the business related to this sector is a growing one. In fact, studies put that in India around 90 percent of PET bottles are recycled out of which around 65 percent at registered facilities, 15 percent in the unorganized sector and 10% reused at homes. The model makes sense the rate of recycling of PET bottles is much higher than the rate in other countries such as Japan (72.1%), Europe (48.3%) and the US (31%).
“With such a huge recycling industry at work in India, the scope of such startups is good. The industry employees around 4 million people and it is one of the best ways of income generation for various people including rag pickers and recyclers. We see huge potential as India’s waste management sector would be worth US $13.62 billion by 2025,” adds Rachit Chawla, Director, Finance & Technology, Risers Accelerator.
Cosmeto Food Organic
On the other hand, Cosmeto Food Organic Pvt Ltd is a startup that provides taste-able authentic Ayurvedic organic handmade skincare products. Risers Accelerator has funded Rs 2 crores for product distribution and it holds 10 percent equity in the company.
It was established 2 years back by Himanshu Chadha. Valued at Rs 20 crore, Cosmeto has been successfully operating pan India and is exporting to about 35 countries. The products by the company are made from ECOCERT Certified organic ingredients with tested and authenticated proven formulations.
What market figure states?
Due to an increased focus on personal care, the market for natural and organic cosmetics market is thriving. As per the report by Market Research Future (MRFR), the global natural and organic cosmetics market is predicted to touch USD $25,100 million by 2023.
“Our products are free of paraben, animal by-products, silicon, mineral oils, toxins, alcohol and other harsh cosmetic chemicals which are safe to be tasted as well. Since they are made of almost 100% natural ingredients, you might mistake them as natural food because of their appearance and texture. And yes, they are all taste-able,” said Chadha, Founder, Cosmeto Food Organic Pvt Ltd.
Playtoome- entertainment and consumer engagement platform
The third company in which Risers Accelerator has invested in is Playtoome, a company that is into technology-enabled live performance, entertainment, and consumer engagement platform.
“Playtoome was launched with a singular vision – to transform the live entertainment space by connecting audiences with their favorite artists through technology and enabling more interactive and immersive live entertainment experiences. The investment will give a big boost to that vision. This association provides us with the capital infusion necessary to scale our operations and also unlocks access to key mentorship and networking opportunities critical to the growth of any emerging startup,” S Keerthivasan, Founder and CEO of Playtoome said.
The company is targeting to be USD $50 million in business and 5 million unique customers in the next three years. Playtoome’s model involves enlisting music enthusiasts on its platform and based on their requests and preferences and the whole experience in an interactive manner. The online portal is two-year-old and has a customer base of 50,000 and has 3500 artists. The customers can view the concerts on his/her mobile, tablet, laptop, PC or even on a smart TV. On the other hand, it takes off the pain of paying a hefty fee for listening to live concert and to be physically present there.