Rekosistem co-founders Joshua Valentino (left) and Ernest Layman
Indonesia-based climate tech startup Rekosistem announced that it had secured a US$5 million (IDR75 billion) funding round led by Skystar Capital and supported by East Ventures, Provident, and other investors.
In a press statement, the Jakarta-based startup said that it is committed to scaling up the capacity of its waste management to more than 20,000 metric tons of waste per month in the next two years.
Launched in 2021, Rekosistem builds an integrated waste management system using the Internet of Things (IoT) and Machine Learning (ML) to simplify and improve waste collection efficiency by 49 per cent.
Their products Reko Waste Station and Reko Hub serve as collection points and material recovery facilities that 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 ML technology improves system analysis and optimisation.
Rekosistem aims to expand the capacity of its waste management system through a series of strategic steps. It starts with developing a waste management system, expanding the application of IoT and ML technology, allocating resources for the development of recycling technology, and improving material recovery facilities (Reko Waste Station and Reko Hub).
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The goal is to process more waste into recycled materials and renewable resources, expand waste management coverage to more cities and provide an Extended Producer Responsibility programme that encourages business owners to take responsibility for their business impact on the environment.
To achieve these goals, Rekosistem said that it plans to engage at least 5,000 workers and business partners in its digital ecosystem.
“At Rekosistem, we are determined to build a business adept at facing the three biggest challenges facing businesses in the current generation, which are the 3Ps, namely 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,” said CEO and Co-Founder Ernest Layman.
Rekosistem uses B2B and B2B2C business models to reach businesses and end consumers through mobile and web applications. The app offers responsible waste management services for residences, buildings, and local governments in partnership with the stakeholders in waste management, be it individuals or business sectors.
Through Rekosistem, waste can be efficiently collected and transported to processing centres to be processed into valuable materials and resources in factories, reducing the accumulation of waste in landfills.
“In addressing the waste problem in Indonesia, the B2B business model is the appropriate approach because the waste supply chain issue in Indonesia is systematic in nature. This business model allows us to transform the currently fragmented waste supply chain into a more circular ecosystem in the most efficient and optimal way, together with all our business partners,” explained COO and Co-Founder Joshua Valentino.
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In the first half of 2023, Rekosistem said that it has increased waste productivity to 523 per cent for recycling, upcycling, and waste-to-energy while also increasing waste workers’ income by 117 per cent.
Currently, it has 300+ waste workers and business partners, 10 Reko Hubs, and 33 Reko Waste Stations in Indonesia.
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Image Credit: Rekosistem
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