E-waste recycling firm ERTH received strategic investment from VC firm Gobi Partners
As part of its ongoing commitment to invest in circular economy-focused businesses, the venture capital firm Gobi Partners, with an Asian focus, recently announced a strategic investment in Malaysia’s Electronic Recycling Through Heroes (ERTH), a local leader in electronic waste (e-waste) recycling. The round’s other co-investor is L8 Ventures.
ERTH stands out due to its dual-pronged strategy. The business offers support for ethical e-waste disposal as well as incentives or gift cards for contributors. According to a statement from Gobi Partners, this strategy promotes a locally driven commitment to environmental preservation while offering financial rewards.
ERTH accomplishes this by using a gig economy workforce of more than 1,000 independent contractors, or “Heroes.” These Heroes are essential in gathering old, broken, and discarded electronics from homes and businesses, including printers, televisions, smartphones, laptops, and other devices.
More than 1,000,000 kilograms of e-waste have been kept out of landfills by ERTH Heroes since 2019. For comparison, this is equivalent to 1,053 Perodua Myvi automobiles or 13 Boeing 737 airplanes. As a result, ERTH is now recognized by the Malaysian Department of Environment as being the country’s biggest authorized e-waste collector.
Thomas G. Tsao, Co-founder and Chairperson of Gobi Partners said, “Our alignment with ERTH’s expansion strategy demonstrates our dedication to driving transformative change. Through this partnership, we are not just investing in a company; we are contributing to a more sustainable and environmentally-conscious future.”
As a symbolic gesture of this new beginning, Gobi coworkers also gathered their electronic waste, including old batteries, laptops, blenders, and even an air conditioner, and turned it over to ERTH for proper disposal. This program, which addresses both social needs and environmental issues, is closely related to Gobi’s Corporate Social Responsibility program, #GobiCares.
Aiming to have a significant impact, especially in waste reduction with a focus on e-waste, ERTH was founded in 2019 by husband-and-wife team Mohamed “Mo” Tarek El-Fatatry (of Finnish citizenship) and Nahed Bedir Eletribi (of Egyptian citizenship).
The Gobi Dana Impak Ventures Fund (GDIV Fund), which is backed by Khazanah Nasional, has added ERTH to its list of supported startups with the help of this funding. Within the framework of Dana Impak’s Future Malaysia Program, GDIV Fund is an initiative by Khazanah to support the local startup ecosystem. With a MYR6 billion allocation over five years, Dana Impak is a crucial tenet of Khazanah’s Advancing Malaysia strategy.
In the upcoming 12 months, ERTH hopes to expand its branches throughout Malaysia, allowing more Heroes to support environmental protection while also earning money.
