GroClub was launched to reduce global waste caused by use-and-threw products. The startup provides bicycle memberships for Rs 6,000 per year or Rs 500 per month.
From bicycles to toys, kids outgrow things rapidly. These objects end up in garages or are thrown out, contributing to global trash. To address this issue, friends Pruthvi Gowda, Hrishikesh H S, Roopesh Shah, and Sapna M S founded GroClub, a firm promoting single-use product reduction.
The co-founders have dealt with clutter as parents of 4–15-year-olds.
“We are four co-founders with five kids aged 4-15. It’s distressing to see outgrown things in a corner or basement with no buyers. Things sit there for years before being discarded. Wasteful landfills harm the environment. Pruthvi, GroClub CEO and Co-founder, says GroClub is a sustainable way to own a product without cutting use.
GroClub, launched in January, sells subscription bicycles solely in Bengaluru. The firm delivers and maintains bicycles for safe and fun rides.
Bicycle waste is a significant environmental issue in India. Bicycles in landfills pollute and deplete resources. Pruthvi suggests parents reduce waste by using GroClub bicycle subscriptions.
In addition to children’s bicycles, the business rents adult bicycles for Rs 549 per month.
Average GroClub subscription cost is Rs 6,000 per year or Rs 500 per month. The business claims its in-house-designed bicycles last 10 years. GroClub refurbishes the cycle for the next customer after the subscription ends.
Most children’s bicycles cost Rs 5,000 to Rs 7,000, and adults’ might cost Rs 20,000.
The firm has 5,300 subscribers and earned Rs 20 lakh in FY-22 and Rs 1.5 crore in FY23. Pruthvi reports a monthly run rate of ~ Rs 25 lakh and a revenue prediction of Rs 3 crore for FY24.
A sustainable resource management method that focuses waste reduction and responsible consumption, the circular economy has grown in popularity.
According to Kalaari Capital, a leading venture capital firm, India’s circular economy might reach $45 billion by 2030.
GroClub promotes “reduce-reuse-regenerate” against “take-make-dispose”.
D2C brands may reduce waste and create a circular economy by stressing sustainable product design, take-back programmes, collaborations, consumer education, and transparency. Pruthvi thinks we must teach our children’reduce-reuse-regenerate’ to combat climate change.
Opportunities and future
GroClub raised Rs 4.3 crore at a valuation of Rs 25 crore after the co-founders invested Rs 2 crore. MS Ramaiah Group’s startup arm, Ramaiah Evolute, led the June pre-seed investment.
An angel consortium comprising Deepak Gowda of Ascent Capital, Chirag Shah of Velvet (Los Angeles), Isaac Reyes of Ravis (Panama), Amit Nanavati of Juicy Chemistry, Sanjay Munirathna of Keerthi Group, Dinesh Talera, Shricharan N J, and Sanjay Sunku (Drink Prime) also participated
Pruthvi said GroClub will soon sell carry cots, car seats, strollers, bunk beds, and toys.
The Indian toys market was $1.5 billion in 2022. IMARC Group expects the market to reach $3.0 billion by 2028, growing 12.2% from 2023 to 2028.
GroClub is also negotiating its next fundraising round.
The next round will raise in a few of months to increase our product category (strollers, kids car seats, carry cots, bunk beds) and explore neighboring areas like Hyderabad, Pune, and Mumbai, says Pruthvi.
Pruthvi said GroClub wants to add 1,50,000 customers from Bengaluru, Hyderabad, Pune, and Mumbai in two years.
Conclusion
GroClub, a Bengaluru startup, offers subscriptions with doorstep delivery and maintenance to decrease single-use toys and bicycles. The company wants to reduce bicycle trash in India, which pollutes and depletes resources. GroClub rents adult bicycles for Rs 549 per month, with an average annual subscription cost of Rs 6,000 or Rs 500. In-house-designed bicycles last 10 years and are repaired for the next subscription. GroClub expects Rs 3 crore in FY24 income from 5,300 subscribers. The company promotes trash reduction and responsible consumption in the circular economy. Indian toys are predicted to reach $3.0 billion by 2028, growing 12.2% from 2023 to 2028. GroClub wants 1,50,000 customers in four regions in two years.
