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Riverrecycle Oy

Finland
Equity
Sustainability
International
Innovation

Clean rivers. Recycle plastics. Protect oceans.
Marketing content

Why to invest in RiverRecycle
 

RiverRecycle is one of the most innovative companies in the world in plastic waste recycling (World Economic Forum recognition) ​ 

Creates, builds and maintains new value chains where none have existed 

Diversified revenue streams: CSR projects, plastic credits, and plastic board sales. Exploring new business areas like processing bio-waste and waste-derived oils

Profitable with 60 % average revenue growth since the beginning

​Flexible and innovative use of available technologies, including own patented technology

First name last name, position

“We are committed to combat plastic waste. We have a track record of doing it profitably. Charitable efforts lack financial credibility while investing in sustainable solutions and business models secures a cleaner future.​

​Join us in creating circular value chains with recycling tech, leading the charge for a healthier planet. You will wake up in the morning knowing you have done not only a sound investment, but also something tangible for the world.”​

Anssi Mikola, CEO & founder of RiverRecycle

Investment information

Days to invest:
9
Investing round ends:
09/05/2024
Type:
Equity offering
Invested so far:
€846,262.50
Equity offered:
5.97 – 15.99 %
Price per share:
€12.50
min investment 40 shares
Transaction costs:
1.50 %
Number of existing shares:
622,200
Fully diluted shares:
692,200
Pre-money valuation:
€7,880,750.00
Maximum issue size:
€1,500,000
Offered units:
120,000
Funding purpose:
Growth
Offered in:
NL, FI, DE, AT
Broker:
Oneplanetcrowd International B.V
License:
ECSPR

Overview

Company profile

RiverRecycle, based in Helsinki, Finland, aims to combat the ocean plastic crisis by creating financially sustainable solutions. Founded in 2019 by Anssi Mikola, the company operates in multiple countries, collecting over 3 million kg/year of waste from rivers in the Philippines, Indonesia, India, Bangladesh, and Ghana. RiverRecycle's mission is to clean plastic from rivers by building a sustainable business model.

The global plastic production, currently at ca 360 million tons annually, poses a significant challenge as 90% of it becomes waste, polluting landfills and rivers. RiverRecycle's solution involves building structures to collect plastic waste from rivers, concentrating and processing it into products like plastic boards or waste-derived oil. With a scalable and replicable concept, they aim to process around 3 million tons of plastic waste annually.

Currently, RiverRecycle generates revenue through Corporate Social Responsibility (CSR) sales and plastic credit trading. They plan to expand their revenue streams by producing recycled plastic boards, waste-derived oil, and processing water hyacinth. Their long-term vision involves creating a profitable recycling business to prevent plastic from reaching oceans, with a focus on both CSR projects and product sales. By executing these strategic steps, RiverRecycle aims to make a substantial impact in combating plastic pollution and inspiring other companies to join the cause.

RiverRecycle's revenue amounted to €1.6 million with EBITDA of €437 thousand in 2023 and is expected to grow to €7.3 million revenue and €2.3 million EBITDA by 2026.

Please refer to the Information Memorandum to read more about RiverRecycle.

Company Info 

Company name: Riverrecycle Oy
Managing Director: Anssi Mikola
Business ID number: 3087706-5
Founding Year: 2019
Address: Mikonkatu 9, 00100 Helsinki
Industry: Recovery of sorted materials
Number of employees: 14 (core team)
Locations 7 countries
Website: RiverRecycle
Social Media:

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Products and services

RiverRecycle provides a sustainable solution to the worldwide issue of plastic pollution in waterways. The company collects plastic waste from rivers and converts it into boards and waste-derived oils, which can be used as construction or raw materials. 

RiverRecycle's main service – a river-cleaning project - is an attractive option for corporate companies seeking to achieve their environmental, social, and governance (ESG) objectives, as well as governmental bodies or communities impacted by river pollution.

Description

The company's comprehensive waste management system not only addresses the immediate issue of plastic pollution but also promotes job creation and environmental improvement. It is important to note that RiverRecycle's approach is not limited to a one-time clean-up but rather adopts a long-term sustainable solution that delivers environmental, social, and economic benefits. ​

From the plastic collected from the rivers, RiverRecycle also obtains plastic credits from international platforms that trade the respective credits to large companies. This is a recurring revenue stream.

Business model

The RiverRecycle model leverages various revenue streams to sustain its operations and foster environmental sustainability. Initially, it offers environmental project implementation services to development aid agencies, CSR funds, and philanthropic organizations, with notable clients including Coca-Cola Foundation, ICTSI Foundation, British government (SMEP) and Huhtamäki plc. Additionally, it generates sales revenue through plastic credit trading with OceanWorks.

Starting in 2024, RiverRecycle expands its revenue sources to include sales of recyclables and recycled products, as well as waste management services. This model benefits multiple stakeholders by improving the living environment, supporting local economies, and assisting companies in reducing plastic waste. It offers readily implementable solutions for extended producer responsibility requirements and aids corporations in meeting regulatory demands for recycled components.

RiverRecycle employs a comprehensive marketing strategy, utilizing digital, traditional, and networking channels, alongside community engagement initiatives, to attract customers and foster partnerships.

Please refer to the Information Memorandum to read more about the business model.

Impact

RiverRecycle contributes to ten of the UN's Sustainable Development Goals, bringing positive change to the environment and communities affected by plastic pollution. Our efforts have yielded measurable and concrete improvements in environmental conditions and the livelihoods of those living amidst plastic waste. To implement these goals, Riverrecycle collaborates with local entities and non-governmental organizations to educate community leaders, young people, and members of the public on the circularity of our projects and the benefits of sustainable household waste management.

As a concrete example, RiverRecycle's Citarum Repair Project trained 4,586 people on how to collect plastic waste more efficiently. RiverRecycle's river cleaning system gathers waste close to the banks for collection by over 25 waste pickers, who now have a more stable livelihood.

The primary objective of RiverRecycle is to establish strategically located waste collection points along the world's most polluted rivers. By doing so, the initiative aims to intercept and collect approximately 660,000 tons of plastic litter annually, which would otherwise flow into the ocean from these rivers. This not only addresses the critical issue of river pollution but also plays a significant role in safeguarding marine and coastal ecosystems from the harmful effects of plastic waste.

RiverRecycle employs an innovative approach by upcycling low-value plastic waste into high-value products. This strategy not only promotes waste recycling but also emphasizes resource efficiency. Through this process, RiverRecycle contributes to the circular economy by transforming discarded plastics into valuable materials, thereby reducing environmental pollution and conserving resources.

RiverRecycle emobodies SDG 9: Industry, Innovation, and Infrastructure, through its embrace of "Zero waste to landfill" principles. The company's holistic model redefines plastic waste management, promising transformative impact. By integrating innovation into infrastructure, RiverRecycle revolutionizes industry norms, driving sustainable progress. This approach not only addresses immediate challenges but also fosters long-term resilience. RiverRecycle's commitment to sustainability underscores the crucial role of industry in shaping a greener future.

Market

Corporate Sustainability and Responsibility (CSR)

The market is growing rapidly for CSR (corporate sustainability and responsibility) projects, as new regulations are implemented and stakeholder demands increase.

For the entire NGO and charitable market, an estimate of USD 313.3 billion has been given to the 2023 market size, expected to grow to USD 331.7 billion in 2024 and USD 411.2 billion in 2028. Much of the growth is attributable to the growth in CSR activities, and especially by corporates. RiverRecycle aims to target potential customers with attractive, scale-up-ready solutions that it can implement worldwide.

Recycled materials market

RiverRecycle operates in several market scopes, such as the global plastic waste management market, the waste to-fuel market, the recycled plastic market, the plastic lumber market, and the alternative building materials market.

RiverRecycle intends to sell to the local markets in the early stages of the recycled material production when the scale is still small. International distribution channels and clients will be sourced for larger scale.

Market positioning

RiverRecycle is well-positioned in the "environment clean-up & remediation" market. It has been one of the first true environmental enterprises and has gained positive reputation with its track record. The current challenge is to be able to tackle all business opportunities and bring them to fruit swiftly. 

Competitive environment and advantages

RiverRecycle’s competitive environment includes a range of organizations, from non-profits and startups to established companies and public-private partnerships, all working towards mitigating water pollution and promoting sustainability. Some of the competitors are non-profit organizations or specific projects, which puts RiverRecycle in a favourable position, as the company can demonstrate continuity and sustainability in its operations in a different way.

RiverRecycle’s competitive advantage lies in its specific combination of technology, approach to river cleaning and the scalability of its solutions.

Please refer to the Information Memorandum for more information on RiverRecycle's market and competitive environment.

Management

  

Anssi Mikola, CEO, Founder

Anssi Mikola

CEO, Founder

A successful serial entrepreneur who has founded three other businesses prior to RiverRecycle, many of which have turned out to be leaders in their respective fields. Anssi has done three exits which have generated significant returns to the shareholders. He is a well-respected thought leader in environmental matters, and frequents as a speaker and panellist in international conferences worldwide. Anssi holds a Master of Science degree in Engineering from Aalto University in Helsinki​.

  

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Tina Nyfors

CFO

A distinguished international career in financing (e.g., EBRD, EU technical assistance coordination; private equity, corporate finance, financial management, and investor relations). She won the silver medal at the Swiss Stock Exchange for excellence in investor relations and is one of the few Nordic IR certificate holders at the London Stock Exchange. She is also a turnaround expert and has advised several companies in strategic financing. Tina holds a Master of Science degree in Economics from Aalto University in Helsinki, and an MBA from IMD, Switzerland.

  

first name last name, position

Vy Dinh​

Director, River cleaning operations​

Starting as researcher, Vy has rapidly established in herself in business climbing from customer success manager to lead RiverRecycle’s prestigious plastic credit operations. Vy holds a Bachelor’s degree from University of Economics Ho Chi Minh City, and a Master’s degree in Creative Sustainability from Aalto University.

  

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Danang Winarto​

Director, Mechanical recycling​

Danang has solid experience in civil engineering, site management, construction and project leadership in waste management. He is expertly expanding RiverRecycle’s business to the next level, namely mechanical recycling. Danang holds a Bachelor’s degree in Civil Engineering from Universitas Pancasila, and a Master of Science in Environmental Science from Universitas Gadjah Mada.

Distribution of company shares

Shareholder

Shares A

Shares B

Ownership

Votes
1 Anssi Mikola

600 000

-

 96,43% 100,00%
2 Impact Ventures Management Pty Ltd - 15 500 2,49%

0,00 %
3 Paul Lillrank - 4 500 0,72% 0,00 %
4 Pasi Mehtonen - 2 200 0,35% 0,00 %
TOTAL 600 000 22 200

100 %

 100 %

Company structure

Riverrecycle Oy has five fully owned subsidiaries (limited liability companies) for operational purposes. They are located in Singapore, India, the Philippines, Ghana and Indonesia. Currently India and Ghana are dormant companies, and the activities in the Philippines and Indonesia are now starting to be built up. Riverrecycle Oy's subsidiares are:
 

  • Riverrecycle Asia-Pacific Pte. Ltd.​

  • Riverrecycle India Private Ltd.​

  • Riverrecycle Philippines Inc.​

  • PT Riverrecycle Operations Indonesia

  • Riverrecycle Ghana Ltd.

Use of funds

The main purpose of the fundraising round is to enable the company to expand and scale up its activities. This involves investments in the plastic board production, reserving and developing available river sites, scaling up the nascent waste-derived oil production as well as hiring and training new people to the team. Some working capital flexibility is also necessary to bridge the timing gaps between customer payments, as project sales occurs as per milestones.

One of the key factors to success in this field is the ability to find suitable locations by riverside to set up the projects and general operations. RiverRecycle has been successful to get involved in negotiations along six of the ten most polluting rivers in the world. Hence, it is essential that the company is able to develop and gain those sites. Withing those actions, RiverRecycle "reserves" to itself some prime locations on the market and strengthens its market position.

The target amount of the equity round is €1,500,000, but the company has scalable plans that could be implemented as follows:

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Maximum Scenario

(€1,500,000 collected in the financing round)

With €1,500,000, RiverRecycle would be able to implement not only mechanical but also chemical recycling facilities in several locations. Two new teams and operational hubs could be established, which would greatly strengthen the operational capabilities on the ground. 70% of the funds would be allocated to the new facilities, the rest would be split between new river sites and working capital for business development purposes.

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Medium Scenario

(€1,000,000 collected in the financing round)

With €1,000,000, RiverRecycle would be able to scale up its plastic board production to three locations, with much larger plastic waste processing capacity. Furthermore, it could gain several suitable river sites and leap-start developing them simultaneously, 75% of the funds raised would be used for production facilities.

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Minimum Scenario

(€500,000 collected in the financing round)

With €500,000, RiverRecycle will be able to start plastic board production in small scale in the Philippines and Indonesia. Most of the raised funds (ca 80%) would be used for this purpose. Ca 10% would consequently go to expand the river sites, and to conduct respective feasibility studies on them.

Financial figures & growth

Actual and planned figures

Get an insight into company name's financial figures, such as turnover and earnings development. Learn more about the growth forecast.

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Valuation

Icon Money

RiverRecycle's valuation is €7.8 million corresponding to a price per share of €12,50. 

Using RiverRecycle's 2026 forecast as a proxy compared to steady-state companies in a comparable analysis RiverRecycle has an Enterprise Value valuation of €13.3 - 27.1 million. Valuing RiverRecycle through a Discounted Cash Flow model RiverRecycle receives a valuation of €10.8 to 77.6 million. 

Given the uncertainties the company has to face as it grows further and considering that further leverage might be needed the management estimates that €7.8 million is a fair valuation for RiverRecycle.

Please refer to the Information Memorandum for a more comprehensive analysis of the valuation.

Exit scenarios

The environmental services sector, including plastic waste management, has been experiencing heightened consolidation. This trend is partly due to the attractive nature of these companies to private equity and infrastructure funds, with several significant acquisitions noted in recent years, indicating a robust interest and potentially high valuations for companies in this space.¹

¹Waste Dive, 27 November 2023. ​

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Trade sale: Due to these factors, RiverRecycle anticipate that the most likely exit scenario for its investors is a trade sale to a large waste management company or alternatively a multinational company seeking permanent ESG solution. In such case, it could be expected that the valuation range should follow the multiple levels shown above, derived from public sources. While specific valuation numbers for individual plastic waste collection companies are hard to pin down without direct financial disclosure, the sector’s growth trends, investment interest, and the strategic importance of waste management and recycling services suggest that companies operating in this space could command significant valuations. The increasing focus on sustainability and the circular economy further underscores the potential for growth and investment in these companies.  ​

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​IPO: Alternatively, after growing its operations significantly, RiverRecycle could consider an IPO. In such case, the company would consider the location of the listing most carefully to ensure the maximum liquidity for the shareholders, and to achieve the best brand recognition for the business. It is at this stage far too early to assess where such listing would take place. Nevertheless, it might turn out to be an interesting exit opportunity for the investors.  ​

Updates

Notice:

In this update section you will find, among other things, answers to investor questions that reach us. The answers shown originate from the respective entrepreneur and are therefore marked accordingly. Invesdor does not undertake any separate verification of the information received after the start of the financing phase.

If you have any questions about the company, send them directly to us at service@invesdor.com.

Update 25.4.2024

RiverRecycle is having a webinar on Monday 29.4. at 18:00 EEST. The webinar includes a brief 5-minute presentation on the company's history and the latest developments, followed by a Q&A segment. The webinar will be held in english. Register here.