Bengaluru Start-up's Vision: Creating a 'Subscribe and Recycle' Economy for Bicycles and Toys

In response to the common challenge of children quickly outgrowing their toys and other items, a group of close friends and co-founders, including Pruthvi Gowda, Hrishikesh H S, Roopesh Shah, and Sapna M S, came together to launch GroClub. This innovative startup is dedicated to tackling the issue of single-use product waste and the clutter it creates. With all four co-founders being parents of children aged between 4 and 15 years, they intimately understand the dilemma of dealing with items that children no longer use. These items often linger in homes, taking up valuable space or eventually contributing to environmental issues when discarded.

Pruthvi, the CEO and Co-founder of GroClub, expressed their motivation, stating, "Among the four co-founders, we have a total of five kids aged between 4-15. It's truly disheartening to see these outgrown products accumulating in corners or basements because there are no takers. These items can linger for years and eventually end up as waste in landfills, directly impacting our planet. GroClub presents a sustainable solution, allowing ownership of products without encouraging excessive consumption."

GroClub, launched in January, currently operates exclusively in Bengaluru and offers bicycles on a subscription basis. The startup not only delivers bicycles to customers' doorsteps but also takes responsibility for maintenance, ensuring that the bicycles remain in excellent condition for a safe and enjoyable riding experience.

The improper disposal of bicycles, particularly those used by children, has become a growing environmental concern in India. Many of these bicycles end up in landfills, contributing to pollution and resource depletion. GroClub's bicycle subscription service provides a solution that enables parents to actively participate in waste reduction. The startup also offers bicycles for adults, with subscriptions starting from as low as Rs 549 per month. GroClub's average annual subscription cost is Rs 6,000 or Rs 500 per month. These bicycles are designed in-house and built to last a minimum of 10 years. At the end of the subscription period, GroClub retrieves the bicycles, refurbishes them, and makes them available for the next subscriber.

To put it in perspective, the average price for a children's bicycle typically ranges from Rs 5,000 to Rs 7,000, while adult bicycles can cost up to Rs 20,000.

GroClub has amassed a subscriber base of 5,300 customers, generating revenues of Rs 20 lakh in FY-22 and Rs 1.5 crore in FY23. The startup maintains a monthly run rate of approximately Rs 25 lakh, with a revenue projection of Rs 3 crore for FY24. It identifies Bike Club as one of its competitors.

In recent years, the concept of a circular economy, which emphasizes waste reduction and responsible consumption, has gained significant traction. According to a report from Kalaari Capital, India's circular economy could reach $45 billion by 2030. GroClub aligns with this philosophy, challenging the conventional "take-make-dispose" approach in favor of the "reduce-reuse-regenerate" mindset. Pruthvi emphasizes that by prioritizing sustainable product design, implementing take-back initiatives, fostering collaborations, educating consumers, and ensuring transparency, direct-to-consumer brands like GroClub can make meaningful contributions to waste reduction and the establishment of a circular economy. Teaching responsible consumption, particularly to children, becomes vital as the world addresses climate change.

GroClub was founded with an initial investment of Rs 2 crore from the co-founders and has since secured funding of Rs 4.3 crore at a valuation of Rs 25 crore. The pre-seed round in June was led by Ramaiah Evolute, a startup wing of MS Ramaiah Group. 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 in the round.

Looking ahead, GroClub plans to expand its product lineup to include children's carry cots, car seats, strollers, bunk beds, and toys. The Indian toys market reached $1.5 billion in 2022 and is expected to grow to $3.0 billion by 2028, with a projected growth rate (CAGR) of 12.2% during 2023-2028.

GroClub is currently in advanced discussions for its next round of funding. Pruthvi reveals, "In the next couple of months, we will be raising funds to expand our product category, which includes strollers, kids car seats, carry cots, and bunk beds. Additionally, we plan to enter neighboring markets such as Hyderabad, Pune, and Mumbai."

As part of its future plans, GroClub aims to onboard approximately 1,50,000 customers across four markets, including Bengaluru, Hyderabad, Pune, and Mumbai, within the next two years.