Making the Scrap Metal Market More Transparent and Sustainable
Metaloop, a pioneering Austrian startup, has just secured €16 million ($17 million) in a Series A funding round to transform the scrap metal trading marketplace. With a focus on sustainability and efficiency, Metaloop connects sellers and buyers of scrap metal, bridging the gap between industries with excess scrap metal and those in need of raw materials.
Key Takeaway
Metaloop, a leading startup in the scrap metal industry, has raised
7 million in funding to revolutionize the way scrap metal is traded. By connecting sellers and buyers, Metaloop addresses the lack of transparency and inefficiencies in the market, making it more accessible and sustainable. The company’s innovative approach improves prices for sellers, provides a wider range of materials for buyers, and ultimately contributes to a more environmentally friendly industrial ecosystem.
In the traditional scrap metal market, industrial entities often struggle to navigate the complex and non-transparent landscape. This is where Metaloop steps in, providing a solution for sellers to monetize their scrap metal by-products and helping buyers gain access to a broader supply chain of secondary raw materials. By aggregating volumes and providing added services like transportation and financing, Metaloop enhances the market for both sellers and buyers, optimizing prices and reducing waste.
The global scrap metal recycling market is poised to reach a value of $58 billion by 2021, with projections indicating it will nearly double by the end of the decade. This growth is driven by factors such as the pivotal role of metals across various industries, the finite nature of metals, and the recyclability advantage they offer.
Metaloop recognizes the significance of recycling metals in reducing greenhouse gas emissions and conserving energy. Recycling metal greatly minimizes the need for virgin metal from mining, which is highly energy-intensive. For instance, melting aluminum from scrap requires only around 5% of the energy needed for mining. By facilitating the recycling of valuable metals, Metaloop contributes to a more sustainable and circular economy.
Metaloop, formerly known as Schrott24, initially focused on serving private individuals and craftsmen but has since shifted its attention to industrial entities. With over 600 clients worldwide, Metaloop acts as a merchant of record, facilitating transactions between sellers and buyers without owning any physical assets. By pooling and aggregating metal volumes, the company attains economies of scale, benefiting all parties involved.
To support its expansion and further enhance its services, Metaloop recently closed its Series A funding round with New York’s FirstMark Capital leading the investment. Additional participants included FJ Labs, Statkraft Ventures, and Silence VC. This significant investment will enable Metaloop to continue revolutionizing the scrap metal trading landscape and promoting sustainability throughout the industry.
