XUsed: The next unicorn in waste industry

XUsed: The next unicorn in waste industry

Current Status Break-Even, Profitable
Amount Invested RM50,000
Funding Required RM300,001 to RM600,000
Description XUsed is a technology platform for trading recycle waste. Also known as ‘Uber for recycle waste’. XUsed is a recycle waste collector without any garbage truck and warehouse for storage. XUsed is aiming to be the ‘SEA Waste Bank’ with Big Data in the next 5 years.
Business Opportunity The government is spending RM2.2billion a year in managing waste. The recycle waste industry is a huge business opportunity. However, many people look at it as ‘less sexy’ business. Therefore, it becomes an exclusive industry for certain players. XUsed is taking this advantage due to lack of competitors and experienced in the market since 2015. XUsed started in B2C segment with schools as our main customers (There are 10,000 schools). Starting this year, XUsed has ventured into B2B segment. In 2019, Environmental Syllabus will be introduce in schools and this will increase the amount of recycle wastes from students. Recycle waste will produce as long as human race exist. Hence, the business opportunity is endless and XUsed is looking to expand to other SEA countries.
Revenue / Business Model XUsed makes money from taking percentage from recycle waste collected. The average profit is 100%. Example, XUsed buys Aluminium from sellers at RM1.70/kg and sell back to our partners at RM4.60/kg. It is a profit of 270%.
Management Team Saiful Adli bin Mokhtar – CEO and Founder. 15 years working in MNCs. Experienced working in banking and O&G industries. MBA with operation background.
Ahmad Faiz bin Ramli – COO and co-founder. IT background. Handling the operation side of XUsed.
Current full time employees is 4 staffs.
Company Background XUsed started as a used cooking oil collector in 2015. Received grant worth RM30,000 from MAGIC in 2016 and launched XUsed website (www.xused.com). XUsed received an offer of investment worth RM250,000 in exchange of 30% equity. XUsed did not proceed with the offer because the current business model is sustainable. In 2017, XUsed started with 2 schools as a pilot project. Due to overwhelming response, in 2018 XUsed has received numerous requests from other schools. Already operating at 53 schools and approval from 57schools. (1% of market share). XUsed is also expanding to B2B segment and Hap Seng is the 1st customer.
Funding Milestone RM500,000
70% – Expansion and marketing
15% – Admin and operation
15% – Product development
Milestone: Every RM100,000 = 200 schools = 200,000 students
% Equity Allocation 15% – 25%
Expected ROI ROI is 10% per annum.
Risks and Mitigation Risks: All competitors such as I-Cycle and HelloGold are exchanging recycle waste to vouchers. They may change their business model and adopt cash.
Mitigation: Need to expand and be the 1st Waste Bank in SEA.
Exit Strategies Exit Strategy: Sell the company to another organisation in 3 years time with 5 times higher valuation. GreenTech are interested with our Big Data and expressed their interest to buy XUsed.
However, XUsed is planning to raise funds through Equity Crowd Funding (ECF) in the near future. Hence, any Angels invest in XUsed will increase their value in a short period of time.
Company Name XUsed Global Solutions
Website/Facebook https://www.facebook.com/xused/
Business Address Unit A3-3A-36, Level 3A, Leisure Commerce Square, Jalan PJS 8/9 Sunway, 46150 Petaling Jaya, Selangor
Contact Person Saiful Adli Mokhtar (SAM)
CAPITAL.MY