‘Leveraging online services to enhance the efficiency and transparency of recycling and trading of metal throughout the EU. — Schrott24 (873076)’
Schrott24 is disrupting the outdated scrap metal recycling industry from the bottom-up, delivering a true European circular economy
Product: A digital platform that utilizes modern web technologies to digitize and automate big parts of todays (metal) recycling industry, making it more transparent and more efficient. Schrott24 is the first of its kind, enabling true EU-wide participation in the vital economy of scrap metal recycling and trading.
Competitive Advantage: Our platform is scalable, with its only true limit being internet access. It uses proprietary algorithms and data analytics to maximise returns for the buyer and seller by monitoring and predicting pricing in scrap metal, preventing unfavourable last-minute changes. It also adds much needed transparency to the system, further reducing price volatility and giving a better picture of what materials are available to buyers.
Phase 2 Project: The innovation project will enable the platform to deliver the full Schrott24 value proposition by introducing end-to-end usage and predictive analytics capability to the already functioning first-generation system. The project will enable Schrott24 to scale beyond regional transactions to facilitating large buyers and internationalisation to support cross-border trades for the benefit of the European economy and environment.
Users/Clients: Addressing the whole value chain, from craftsmen and (metal) recycling businesses to large international smelters and foundries. Approximately 100 recyclers are already involved and they have generated more than €6 million in revenue through our platform with customers including Siemens, large systems manufacturer Straub KG and Österreichische Nationalbank (Austrian National Bank).
Business Model & Commercialisation: Our business model is marketplace and dependent on the scale of the transaction. We obtain revenue from transactions:
- Revenue stream #1, small transactions: Smart Automated matching of buyers and sellers directly for a minimal transaction fee of 3% (agency model).
- Revenue stream #2, large transactions: Schrott24 purchases and sells as a primary, central dealer with an average 3% mark-up (merchant model).
Commercialisation plans focus on scrap metal trading, but in the future, we will expand to cover all recyclable materials, including plastics, and sawmill waste (e.g. for wood pellet production).
Company: Schrott24 is an Austrian software company with deep roots in the scrap metal industry. Founded in 2016 with a core team of 12, plus supporting staff, we have a wealth of experience in software development and working in the scrap metal trading industry. The company has developed a large network of customers and contacts, from small scrap dealers to multinationals. The executive team members consist of Alexander Schlick, co-founder and co- CEO; Jan Pannenbäcker, co-founder and co-CEO; and Andreas Fruth, CTO. So far Schrott24 have received €878K funding from renowned business angels, international top-tier Venture Capitalists, and 3 public grants from Austrian institutions, with revenues for our first generation offering for 2018 amassing over €5million (YoY growth >200%).
Key partnerships secured: We have established partnerships with over 70 scrap dealers throughout Germany and Austria, and large size smelters and refineries throughout Europe, from Finland to Italy and France to Ukranie. Well- known commercial partners include Siemens, Oesterreichische National Bank (Austrian National Bank), PORR Group (One of Austria’s largest construction companies) and REWE Group (One of Europe’s largest retail chains). Gisbert Rühl, CEO of Klöckner, Europe’s largest new steel trader (€7billion revenue) is also personally invested.
Projected sale volume in 5 years: During a feasibility assessment funded through the Phase 1 of the SME Instrument, an accumulated 3,186,770,206 tonnes of material was projected to be sold through the platform by 2022.