Amwoodo Secures $1 Million Funding from Zerodha’s Rainmatter to Boost Bamboo Production

• ByStartupStory     |    April 17, 2024

In a bid to revolutionize India’s bamboo industry, Amwoodo, a Kolkata-based sustainable bamboo products maker, has successfully raised $1 million in funding from Rainmatter, a venture fund backed by Zerodha.

The investment marks a significant milestone for Amwoodo, which has been striving to enhance the local bamboo ecosystem and reduce dependency on Chinese imports. Agni Mitra, founder of Amwoodo, emphasized the strategic importance of Kolkata’s proximity to the bamboo-rich northeast region in catalyzing their mission.

Mitra expressed, “Most of the bamboo products sold in India were imported from China. In India, Kolkata was geographically well located near to the northeast and most of the bamboo forest cover was in the northeast regions. I found that farmers and artisans working in the field don’t have proper machinery and the skills that they need to ramp up production and match the product quality that China is producing. That’s how we started this company.”

The infusion of funds will predominantly be allocated to capital expenditures, including machinery upgrades, artisan upskilling programs, and expansion initiatives. Amwoodo specializes in crafting a wide range of bamboo items, spanning from combs, toothbrushes, and razors to slippers, compostable sanitary bags, and towels.

“We are committed to enhancing the quality and availability of locally-made bamboo products. By directly sourcing bamboo from around 400 farmers in the northeast and collaborating with about 380 artisans, we aim to elevate India’s position in the global bamboo market,” Mitra affirmed.

Founded in 2019, Amwoodo has rapidly carved a niche for itself in both the business-to-business (B2B) and business-to-consumer (B2C) sectors. The startup boasts a prestigious clientele, including renowned hospitality chains like Taj Hotels and The Leela, along with popular direct-to-consumer brands such as Himalaya, Man Company, Nat Habit, and Kimirica.

The company’s commitment to sustainability has also translated into remarkable financial growth, with sales soaring to Rs 21.72 crore in the last financial year, marking a 3.5 times increase over the previous year. With ambitious targets set for the ongoing financial year, Amwoodo aims to achieve sales of approximately Rs 60 crore.

Amwoodo joins the league of other players in the sustainability domain offering bamboo-based products, including Allter, known for its bamboo diapers, and Boocane, along with Beco.

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