ExtraCarbon: Working for a Cleaner Future
ExtraCarbon was a company focused on the sorting stage of India's unorganized waste management industry. The company was founded in 2013 with owners' capital and some investments from friends and family. In October 2018, one of these friend investors expressed a desire to exit the venture. Although ExtraCarbon had made steady progress since its founding, the company did not have enough money to buy out the investor's stake, and the company's valuation was too low for the investor to benefit from leaving the venture. The investor complained that the founders had never taken his advice to scale up the venture more quickly, which would have benefitted all stakeholders by providing a better valuation and attracting more investors to the company. The incident led the founders to review their current scale of operations and make more ambitious growth plans for the company, including setting an ambitious revenue target of US$6 million by 2021. The challenge was to identify resources and ways to achieve this target. What strategy would help the company reach its target in a largely unorganized industry? Rakesh Gupta is affiliated with Institute of Management Technology, Ghaziabad. Lubna Nafees is affiliated with Appalachian State University. Saumyajit Guha is affiliated with Institute of Management Technology (IMT) - Ghaziabad.