Green Startups in India: Pioneering a Sustainable Future

In the wake of the global pandemic, entrepreneurship in India has experienced an unprecedented surge, particularly in the green sector. According to the Global Entrepreneurship Monitor (GEM) India Report for FY 2021-22, the entrepreneurial activity rate in India jumped from 5.3% in 2020 to 14.4% in 2021, reflecting a growing number of adults aged 18-64 starting or running new businesses. As of January 2024, India is home to over 112,718 recognized startups, making it the third-largest startup ecosystem globally, with 111 unicorns valued at $350+ billion.

What Are Green Startups?

Green startups are businesses that focus on creating products or services that promote environmental sustainability. These enterprises aim to reduce their environmental impact through practices such as recycling, renewable energy, and the use of eco-friendly materials. The growth of these startups is fueled by various factors, including youth entrepreneurship, education initiatives like the Entrepreneurship Mindset Curriculum in Delhi government schools, and government support through schemes like Pradhan Mantri MUDRA Yojana and the Credit Guarantee Fund Trust for Micro and Small Enterprises. Additionally, corporate social responsibility (CSR) initiatives play a significant role in supporting these eco-conscious entrepreneurs.

Despite the encouraging numbers and trends, green businesses face unique challenges. They must navigate immature markets, the gap between consumers’ intentions to buy eco-friendly products and their actual purchase, close competition with multinational fast-moving consumer goods, limited access to finance, and difficulties in quantifying environmental impact.

Why Support Green Startups in India?

Supporting green startups is crucial for driving environmental action and fostering sustainable development. On Global Entrepreneurship Week, we highlight a few startups supported by TechnoServe’s Greenr Sustainability Accelerator program in partnership with the IKEA Foundation and the Visa Foundation. These startups have overcome various obstacles through strategic actions akin to careful Jenga block moves.

5 Inspiring Green Startups Making an Impact

1. Brisil – Turning Rice Husk Ash into Eco-Friendly Silica

Brisil Technologies, founded by Tanmay Pandya, addresses the problem of rice husk ash utilization for tires, rubber products, footwear, paint, toothpaste, and other industries. This bio-silica helps customers reduce their carbon emissions and achieve their sustainability targets. The company licenses technology to rice husk ash-generating firms, thereby creating revenue by selling the plant and licensing the technology.

Key Challenges Addressed by Greenr: - Working Capital Flow Creation: By identifying and creating a distribution model, Brisil was able to onboard traditional distributors from allied chemical industries, allowing them to bypass lengthy credit cycles. - Market Expansion: By targeting high-end brands, Brisil secured contracts with global sportswear and tire manufacturers, leading to a 600% revenue growth in 2024-25.

2. RCube Recycling – Circular Economy for Printer Cartridges

RCube Recycling, founded by Ravi Ravariya, focuses on recycling used printer cartridges and toners. The startup's Green Reengineering Model (GRM) involves a circular transaction where corporates give their used cartridges to RCube, who recycle it and resell the same to the corporates at a more affordable price.

Key Challenges Addressed by Greenr: - Market Expansion & Linkages: Greenr revamped their sales model by creating a corporate pitch deck and refining their customer value proposition. - Fundraising: At the Mumbai Roadshow, Greenr helped create an investor pitch deck, garnering interest from six fund houses.

3. Plastroots – Zero-Landfill Waste Solutions

Plastroots, founded by Kapil Jangale, specializes in comprehensive dry waste solutions and training programs to help rural communities minimize their carbon footprint. The company promotes sustainable garbage disposal and advocates for a circular economy.

Key Challenges Addressed by Greenr: - Building a Strong Pipeline for EPR Compliance: A deliberate approach to creating a solid pipeline for Extended Producer Responsibility (EPR) compliance services was carried out by growing the team and refining the strategy. - Expansion of Business Verticals: Collaborations with major cement manufacturers were formed to provide Refuse-Derived Fuel (RDF).

4. Ekam Eco – Waterless Sanitation Solutions

Ekam Eco, founded by Uttam Banerjee, focuses on developing sustainable sanitation technologies and solutions to conserve water and convert waste into resources using natural means. Their range of products includes waterless urinals, natural cleaning solutions, and sewage treatment solutions.

Key Challenges Addressed by Greenr: - Sales and Marketing Efforts: Greenr helped the founders focus on natural care solutions and Zerodor (their waterless urinals) directed at big-volume customers. - Fundraise and explore M&A: The team secured a strategic partnership, unlocking capital for scaling efforts.

5. Stonesoup – Sustainable Menstrual Products

StoneSoup, based in Bengaluru, is transforming menstrual health and sustainability by creating jobs for women and promoting periods that are shame-free, trash-free, rash-free, and cash-free. The company offers patented reusable menstrual cups and washable cloth pads, alongside menstrual health education.

Key Challenges Addressed by Greenr: - Strategy for Online/Offline Sales: A targeted approach to B2B client expansion drove a 30% revenue increase, reaching INR 0.8 Crore. - Strategy for Online Marketing: The team saw a 30% increase in social media followers, driving brand visibility and generating valuable corporate leads.

How TechnoServe Supports Green Entrepreneurs

TechnoServe’s Greenr Sustainability Accelerator program, supported by the IKEA Foundation and Visa Foundation, is dedicated to scaling green startups on a mission to drive environmental action. It offers them capacity-building, business modeling, go-to-market strategy development, and access to finance.

FAQs

What are green startups?
Green startups are businesses focused on creating products or services that promote environmental sustainability. They aim to reduce environmental impact through practices like recycling, renewable energy, and eco-friendly materials.

How many green startups are there in India?
The green startup ecosystem in India has been rapidly growing, with hundreds of startups working in areas such as clean energy, waste management, sustainable agriculture, and water conservation.

What challenges do green startups in India face?
Green startups often face challenges related to funding, market access, and competition with established industries. Educating consumers and building a customer base for sustainable products can also be difficult.