Posted on March 07, 2016
Intellecap Impact Investment Network (I3N or I-cube-N) has announced closure of an investment in Mumbai-based Cleanse Solutions (India) India Pvt. Ltd. which manufactures and operates automated bike washing machines under the brand of BikeCleanse.
The deal was led by Primarc I Venture Advisory owned by Sidharth Pansari in consortium with Sandeep Patni and Ayush Jain of Charak Ayurmedica, Abhishek Agarwal of DRA Infratech, Apurva Salarpuria of Salarpuria Group and Satveer Singh Thakral of Singapore Angel Network. Other Investors include Karan Bedi, Anil Jaggia, Avishkar Singhvi, Yogesh Chaudhary, Nivedita Desai, Prashant Thakker and Sohil Shah. Company advisor, Her Excellency Nimisha Madhvani who is the current Ambassador of Uganda to France, Spain and Portugal also participated in this round.
Led by four co-founders – Siddharth Jain, Arnav Shah, Naresh Talla, Manoj Geesala, BikeCleanse aims to be the pioneer in automated Cleaning and environment friendly technologies. Its current solution is a compact and a fully automated bike washing machine capable of efficiently washing all two-wheelers including mopeds, motorbikes, scooters and even super bikes within 2 minutes. The machine is integrated with a water recycling unit which drastically reduces wastage of water and also maintains the pH value of water for effective and safe bike washing. A single machine recycles up to 95% of water and effectively uses around 7 liters per wash compared to a manual wash which consumes around 50-100 liters per wash. The company has entered into technical collaboration with authorized service centers of two-wheeler companies and recently struck an agreement with Indian Oil Corporation (IOCL) to set-up machines across IOCL petrol pumps.
Siddharth Jain, Co-Founder of Bike Cleanse, said “We are extremely excited to have partnered with marquee investors who will add immense strategic value and enable accelerated growth of the Company in India and beyond. With this infusion, we will immediately increase the manufacturing capacity, hire key personnel and look at expansion into the ASEAN market within a year. Apart from the ASEAN market, we are already seeing a lot of enquiries from other developing markets in South America, which we hope to enter in the next 3 to 5 years. We intend to raise a bigger institutional round in 6 to 12 months to kick start our geographic expansion.”
Lead investor Sidharth Pansari said, “Primarc Group is focused on investing in highly scalable and sustainable businesses backed by stellar founding teams. India is a two-wheeler dominated economy enjoying over 80% market share of total vehicles segment. With over 120 million bikes on Indian roads and more than 16 million two wheelers sold in India last year BikeCleanse is addressing an important need to remove inefficiencies across the value chain of bike cleaning industry which has attracted large order flows and inbound enquiries from across the globe. This large market opportunity is backed by a team which differentiates itself on quality and continuous product innovation.”
Satveer Singh Thakral who also joins the Board along with Sidharth Pansari, added, “We are looking at adding strategic value to BikeCleanse by enabling expansion across ASEAN market backed by large presence of the Thakral Group. What excited us most is the opportunity for BikeCleanse to become one of the largest franchise brands globally due to the low franchise investment of USD 10,000 compared to upwards of USD 100,000 for other franchising opportunities with brands like Subway, Golds Gym etc. Apart from tremendous water saving, this is an opportunity to create entrepreneurship amongst the masses through a franchise model.”
Nimisha Madhvani expressed her delight at the investment and added, “This is clearly in line with both the Indian Government policy of Swachh Bharat as well as the Global policy for establishing a clean environment under Cop21.”
Akshit Gupta, Manager at I3N confirmed, “As per WHO, India is expected to reach a level of water crisis on account of insufficient water per person as a result of population growth. The total amount of usable water has been estimated to be between 700 to 1,200 billion cubic meters in India and a country is considered water-stressed if it has less than 1,700 cubic meters per person per year. Billions of liters of water is wasted in bike washing alone in India and BikeCleanse is addressing this huge problem of potential water crisis through innovation. Each machine from Bike Cleanse is expected to save almost half a million liters of water per year.”
I3N recently invested in micro housing finance company, Swarna Pragati and positive journalism company TheBetterIndia.com and is in advanced stages of closing 3 more investments. I3N remains committed to add value to the start-up eco-system by identifying curated start-ups that are addressing the need or problems of large untapped opportunities.
Intellecap uses the power of Intellect, Capital and Networks to address challenges faced by Low- Income population worldwide. Positioned at the unique intersection of social and commercial business, Intellecap and its four group companies employ 1,000 people with business interest in Consulting, Investment Banking, Angel Networks, Venture Debt, Trade Finance and Microfinance, all dedicated to alleviate challenges of the Low-Income population in developing markets. To find out more about Intellecap, visit www.intellecap.com
The Intellecap Impact Investment Network (I3N) is the largest angel network facilitating investments into early stage for-profit enterprises in the sectors of Agriculture, Clean Energy, Education, Financial Services, Healthcare, and Water & Sanitation. I3N sources and screens enterprises, and provides them with extensive consultations before showcasing them to its members. The network currently has over 100 members and has made 15 investments. I3N is an initiative of Intellecap, which is a pioneer in providing innovative business solutions to profitable and sustainable enterprises dedicated to social and environmental change.