With an annual production of 57 Mn tonnes, India accounts for 23% of the world’s bamboo resources. Despite the abundance, India’s bamboo industry faces a significant trade deficit. While exports remain low, imports, particularly of bamboo raw materials, have been on the rise. A report estimates these imports to be 33X more than the exports.
For Agni Mitra, an NRI and now the founder of Amwoodo, this imbalance was hard to digest, mainly due to his commitment to sustainability.
Speaking with Inc42, the first-time founder said that bamboo products have long been part of his daily routine, and during his travels to 52 European countries over a span of two to three years, he discovered that most bamboo items were made in China. However, what broke his heart was the fact that India could easily get rid of its plastic pollution if it started to foster its bamboo industry in the right fashion.
Further, his keen research into the matter introduced him to the fact that despite having the second-largest bamboo forest coverage in the world, India contributed less than 1% to the global bamboo market dominated by China, Vietnam, and Cambodia.
This revelation hit Mitra, who has been on a mission to battle plastic pollution for as long as he can remember. Looking at the white space, Mitra joined hands with his colleagues and friends Sourav Dey and Avijit Rajak to incorporate Amwoodo in April 2019.
Today, the company specialises in manufacturing premium bamboo personal care products and a wide range of guest amenities, including combs, toothbrushes, razors, slippers, compostable sanitary bags and towels, for the hospitality sector.
Amwoodo directly sources bamboo from approximately 530 farmers in the Northeast and collaborates with around 580 artisans. The final refinement of products to meet export standards takes place at their factories in Kolkata.
The startup provides its products to Himalaya Wellness Company, Bombay Shaving Company, and hotel chains like Hyatt, IHG, and ITC Hotels. It operates on a revenue model that includes B2B, B2C, D2C and is now looking to expand into the B2G space.
Recently, the startup raised $1 Mn in funding from Zerodha-backed venture fund Rainmatter.
Amwoodo’s Early Days
With 13 years of experience in product management and marketing, Mitra has worked with names like Olympus and Medtronic in the medical devices industry.
Before launching Amwoodo in India, Mitra had initial plans to launch a sustainable startup in Germany. “At the time, Germany was offering significant subsidies to brands focussing on sustainability and reducing plastic,” the founder said.
However, upon returning to India in 2018, he realised that India needed a sustainability venture far more than Germany. However, the trigger point came only during the pandemic when he realised how people were not segregating waste and were relying too much on plastic products.
Bamboo looked like a promising alternative to Mitra. At the time, many entrepreneurs were importing bamboo products from China. However, Mitra decided to leverage India’s resources, even though his friends and family kept telling him otherwise.
Refuting being a mere trader by importing and reselling goods and determined to create a social impact by working directly with farmers and artisans, he built Amwoodo with Dey and Rajak.
“As a result of our efforts, farmers who were earning around INR 10,000 in 2019-2020 are today making between INR 45,000 and INR 50,000 monthly. Similarly, artisans who previously made INR 8,000 to INR 10,000 are now earning around INR 25,000 to INR 30,000 per month,” Mitra said.
However, per Mitra, the journey has not been easy. In the initial months, an artisan took money against a huge consignment and disappeared. This proved to be a big blow to the founder and the company was on the verge of shutting down.
This was when other cofounders entered into the picture. While Rajak took charge of finance, Dey managed interactions with farmers and artisans. However, the world was soon hit by the pandemic, breaking the supply chain back.
“The supply chain was disrupted, making it difficult to move goods. At one point, the team had to personally transport raw materials from Northeast to the factory,” the founder said.
On the operations side, it also became difficult to establish SOPs and maintain quality control, especially when aligning with artisans. Amid these issues, securing external capital remained a constant struggle.
Notably, the brand started with just INR 10,000 and remained bootstrapped for four years until recently when it raised funds from Zerodha-backed Rainmatter. At one point in time, Mitra had to mortgage his house to secure funds for an order from Himalaya, as banks were unwilling to provide loans without collateral.
But, as they say, when the going gets tough, the tough get going. The startup managed to generate INR 22 Cr in revenue in FY24. Per the founder, the startup is EBITDA positive and hasn’t burned any cash so far.
“The journey from a meagre INR 10,000 to INR 22 Cr was not an easy one, particularly without any funding. The focus was never on quick gains but on making sustainability affordable,” Mitra said.
From Businesses To Consumer Hands: Amwoodo’s Bamboo Pivot
Amwoodo’s journey began as a B2B business with just three SKUs— a toothbrush, razor, and comb. A majority of business started coming from the hospitality sector.
“Initially, we provided kits that included toothbrushes and toothpaste from brands like Patanjali and Colgate. However, our hospitality clients began requesting sustainable packaging for the toothpaste. This feedback led us to develop sachets and toothpaste tablets, which have been well received in the hospitality sector, as they are fully plastic-free. This further inspired us to create our entire oral care range,” Mitra said.
In 2021, the company expanded into B2C with its sub-brand Dencrus, followed by IMECO and Shaveco in 2023. The startup also supplies sustainable products to companies like Bombay Shaving Company, FirstCry, and Souled Store.
While it has mostly focussed on its B2B business, it has recently shifted more towards the B2C segment. For its B2C customers, the startup launched ‘Ecoconsious,’ a marketplace featuring its three sub-brands that focus on sustainable products, including oral care, shaving essentials, and general items like bamboo bottles and combs.
According to the founder, this marketplace was created to offer a more focussed and cohesive selection of sustainable products, rather than mixing unrelated items.
The brand expects to generate a revenue of INR 1 Cr by the end of December 2024 from its Ecoconsious marketplace.
With more than 200 products in its stack, 65% of Amwoodo’s revenue comes from B2B, 25% from B2C, and the rest from D2C. Additionally, 8% of its sales come from exports to markets such as Germany, Saudi Arabia, Qatar, and Oman.
Amwoodo’s Next Big Bet?
As of now, the brand has been actively working to strengthen its credentials in the B2G (business-to-government) segment. Mitra said the company has already started collaborating with several state governments, providing bamboo-based solutions for infrastructure projects.
It is already involved in projects with state highways NHAI, the West Bengal State Highway, and the governments of Assam and Mizoram, offering bamboo flooring, wall panels, and facades. Looking ahead, the company will also be providing bamboo ceilings for newly constructed government airports.
Meanwhile, the company is also planning to expand into the beauty and personal care space. However, the founders are waiting for their next funding round, scheduled to happen post-Diwali. In this upcoming round, the brand aims to raise $8 to $10 Mn from existing and new investors.
According to the founder, the new funds will primarily be allocated for research and capital expenditures, as the company is receiving significant orders from the government and expanding rapidly into the B2C and D2C segments.
“Currently, we have over 30 distributors across India, and we plan to increase the number to 100 soon. Following the fundraise, we aim to expand to 200-250 distributors,” the founder added.
For the upcoming BPC launch, the founder said that the company has already filed eight patents, with 16 more in the pipeline. In addition, it continues to invest heavily in research and certifications. The company plans to enter this category by FY26.
On the financial front, the founder sees the company crossing the INR 60 Cr revenue mark this year.
“Last year, we surpassed INR 22 Cr in revenues. Post-Diwali, with an uptick in tourism and the influx of international visitors, we anticipate generating around INR 7-8 Cr per month,” the founder shared.
Looking ahead to FY25, the company is investing significantly in R&D and expanding its workforce. It has also opened new offices in Bangalore and Delhi and is planning to open more in Chennai, Hyderabad, and Mumbai.
Additionally, with the support of Rainmatter, it is also seeking to sell its products via Zepto and BigBasket.
While the brand has successfully navigated the B2B landscape and is ambitiously pursuing opportunities in the B2G sector, it will be interesting to see how it adapts to the consumer space, especially as new startups emerge daily.
In this highly competitive paradigm, companies like Beco, Bamboo India, and Boocane are also offering eco-friendly solutions using bamboo. As the company ventures into the increasingly crowded consumer market, its ability to differentiate itself and meet the evolving needs of consumers will be crucial for its long-term success.
[Edited By Shishir Parasher]
