This post was originally published on this site
Replenysh closed on an $8 million Series A round to build what it’s calling a “circular economy.”
The Costa Mesa-based startup developed a digital platform where businesses such as bars, restaurants and hotels can ensure their recyclables go to a recycling center and not a landfill.
The biggest problem to recycling, according to the company, is that only 10% of plastics are actually recycled.
“Our vision is to build this new circular resilience supply chain for every brand on the planet and put landfills out of business,” Replenysh Chief Executive Mark Armen told the Business Journal.
Proceeds from the funding round will support adding intelligence capabilities to its platform, as well as scaling and automating the onboarding process of the recyclables.
The funding was led by Santa Monica-based venture capital firm M13 with participation from Incite, Kindred Ventures and Floodgate Fund.
Replenysh has raised approximately $10 million to date, including $2 million in seed funding in 2020.
Incentivizing Businesses to Recycle
Armen sees Replenysh as more than just a recycling company.
“We’re working with businesses to incentivize them to divert their material from landfills and put it into our platform,” he said.
He said that companies already have good recycling habits but that the company just helps to “connect the dots.”
Replenysh provides businesses that sign up for its platform with a free trash bin. Once it’s filled up, they can request a pickup, which then gets dispatched to one of Replenysh’s network of local recycling centers.
The app gives businesses a real-time estimate of the value of their recyclables and tracks where it goes.
Armen said that the company takes a small percentage “of the material value that moves across from an operator to a mill” and also charges businesses for access to its software.
“That makes us different from a traditional recycling or waste company, where the customer is the supplier,” he said. “Our customer is the demand side, and that’s how we’ve flipped the business.”
Replenysh’s network spans 10 states in the U.S. and includes 200 bars and restaurants in Southern California.
Notable customers of the company include Coca-Cola, PepsiCo and Walmart.
“We work not only with their HQ and their national teams, but also their local teams as well,” Armen said.
Following his graduation from IE Business School in 2008, Armen was the second employee at Greenopolis, which was eventually acquired by Waste Management Inc. (NYSE: WM).
Greenopolis distributes kiosks to collect recyclables in high-traffic locations.
“We were trying to fill the gap, but I realized we would never be able to by being part of the incumbent trash industry,” Armen said. “What we needed was to leverage software to build a new supply chain to bridge the gap.”
Armen then founded Replenysh in 2016.
The company said it has recovered more than 164 million pounds of waste since launch.
New COO with Ties to WM Technology
Replenysh is growing its 16-person staff ahead of expansion.
Armen said they’ve been hiring software engineers and building its operator network.
In April, the company announced that it appointed Andrew Langtry as chief operating officer.
“He has a great background in growing marketplaces and operational efficiency within delivery and pickup marketplaces,” Armen said.
Langtry, who will be in charge of strategy and market expansion, previously served as vice president and general manager at WM Technology.
“Replenysh is solving the biggest bottleneck in material sourcing: consistent, clean supply,” Langtry said in a statement. “We’re flipping the model—sourcing starts at the edge, with visibility built in from day one.”