§1What this business is
Homes, offices, schools, hotels and housing societies book a pickup on an app. A ragman partner weighs and collects paper, plastic, metal, glass, e-waste and textiles. The scrap goes to an aggregation centre where it is sorted, graded and made into lots, and authorised recyclers and bulk traders bid for the lots online. The platform earns a commission on scrap value, an auction fee of 3–7% per lot, monthly fees from bulk waste generators, logistics margins, and charges for waste reports and EPR paperwork.
§2Is it right for you?
Who it is for
Someone who knows the local scrap trade and can run both a field team and an app.
Who it is not for
A pure tech founder with no feel for scrap rates and recycler networks.
Advantages
- Every home, office and shop produces scrap every day
- Auctioned lots fetch a more open price than a single buyer's offer
- Bulk generators pay monthly for collection and reports
- Brands need EPR paperwork, which the platform can supply
Drawbacks
- Large start-up cost of ₹1.10 crore, ₹25 L of it on software
- Scrap prices move with the metal and paper markets
- Managing 30–50 field partners needs tight control
- Local kabadiwalas compete on cash and convenience
Skills you need
- Scrap grading and daily rates
- Managing a field team
- Running an app and online auctions
- Dealing with recyclers and municipal bodies
Why difficulty 4/5: Large outlay plus field operations and an auction app at the same time.
§3Market
Who buys
- Authorised recyclers and processors
- Bulk scrap traders
- Brands and NGOs needing EPR and sustainability reports
How it sells
- Online auction of graded lots
- Monthly contracts with schools, offices, hotels, hospitals and housing societies
- Doorstep pickup booked on the app or website
Good to know
- The profile sets the auction fee at 3–7% per lot.
- Stable-year revenue in the profile: collection commission ₹1.20 crore, auction fees ₹80 L, institutional contracts ₹60 L, other services ₹40 L.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| IT platform (customer app, ragman app, auction engine, admin dashboard, payment gateway) | 1 | ₹25,00,000 |
| Weighing and sorting equipment (digital scales) | — | ₹8,00,000 |
| Vehicles (leased or owned) | — | ₹20,00,000 |
From: Uttarakhand DUY project profile — Integrated Ragman Services & Scrap Auction Platform
- Recyclable scrap — paper, plastic, metal, glass, e-waste, textilescollected from homes, institutions and businesses
From: Uttarakhand DUY project profile — Integrated Ragman Services & Scrap Auction Platform
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence
- Permission or registration with the urban local body
- State Pollution Control Board authorisation where applicable
- E-waste authorisation if you handle electronic scrap
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
At ₹1.10 crore the project is above PMEGP's ₹20 L limit for services; CGTMSE can back a loan without collateral, and Stand-Up India lends ₹10 L–₹1 crore to SC/ST and women founders.
§7Money
How the investment is worked out: Fixed capital ₹80 L (IT platform ₹25 L, aggregation infrastructure ₹15 L, weighing and sorting equipment ₹8 L, office ₹5 L, vehicles leased or owned ₹20 L, pre-operative ₹7 L) + working capital ₹30 L (operations and logistics ₹15 L, payments float ₹10 L, marketing ₹5 L) = ₹1.10 crore.
Working capital: Working capital ₹30 L, of which ₹10 L is kept as a payments float so ragmen are paid on time.
Year not printed on the DUY profile — check current prices before you buy equipment.
§8Export potential
A local service; there is no goods export in this business.
§9Risks — where people fail
- A fall in scrap prices
- Under-weighing or theft in the field
- E-waste and hazardous items needing separate permission
- Slow uptake of the app by households
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working ragman services & scrap auction platform unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Ragman Services & Scrap Auction Platform?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.