In an unique interview with Enterprise North East (BNE), Abhijit Pegu, the founding father of LW3 Private Limited, supplied insights into the corporate’s journey, challenges, and future plans. LW3 Private Limited, a deep-tech blockchain startup co-founded by Abhijit Pegu and Marungsha Swrang Brahma, was included in December 2022 in Guwahati. The startup, supported by NRL iDEATION and STPI Guwahati, goals to unravel the issue of traceability and authenticity crises throughout industries utilizing blockchain-based Digital Product Passports (DPPs).
Excerpts from the Q&A interview:
Enterprise North East: What impressed you to begin LW3 Private Limited, and the way has your journey been since its inception?
Abhijit Pegu: It began with a private expertise once I was at a fitness center. My teacher really helpful a whey protein powder, however my household was skeptical about its authenticity. Once I bought one, I checked its QR and secret code, solely to search out that it was faux. This incident sparked my curiosity. At the moment, I used to be working at KPMG, the place blockchain’s potential for anti-counterfeiting was gaining consideration. I performed in depth analysis and mentioned the concept with my co-founder, who was my school junior. That’s how LW3 was born. At present, after two years and eight months, we’ve got obtained validation from the federal government, the startup ecosystem, and potential prospects.
BNE: As a deep-tech blockchain startup, what are your plans for scaling and commercialising your Digital Product Passport service?
Abhijit Pegu: Digital Product Passport (DPP) is a brand new EU regulation mandating product id for traceability. Blockchain naturally matches into this because it supplies immutable digital data. We’re at the moment leveraging Algorand and Polygon blockchains and are increasing to Cardano. We intention to develop options throughout a number of chains to keep away from geographical and technological limitations.
Concerning commercialisation, we’ve got engaged with India’s largest three-wheeler EV producer for a pilot undertaking. Deep-tech adoption is difficult, and we perceive that income era will take time. We’re specializing in a number of pilots and proof-of-concept initiatives throughout industries like EVs, photo voltaic panels, wine, and spices. We anticipate to begin producing income by the tip of this 12 months.
BNE: How does LW3’s Digital Product Passport (DPP) service work, and what industries shall be its largest adopters?
Abhijit Pegu: DPPs perform as digital identities for merchandise, guaranteeing traceability and authenticity. This aligns with world rules on sustainability and recycling.
Industries resembling EVs, electronics, and meals & textiles are potential adopters. As an illustration, in India, we’re engaged on “Battery Aadhaar” to trace strategic minerals in EV batteries. Equally, digital producers want options for recycling compliance, as per the EPR mandate 2022, which would require 80 per cent of merchandise to be recycled by 2028.
BNE: What is your pricing mannequin for traceability and provenance options?
Abhijit Pegu: We observe a versatile pricing mannequin primarily based on sector-specific sensitivities. The pricing for an EV battery, which prices round INR 1 lakh, can’t be the identical as a tea packet value INR 100. We’re experimenting with subscription fashions and licensing charges and anticipate to finalize our pricing by subsequent 12 months.
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BNE: On condition that India loses over INR 1 lakh crore yearly to counterfeit merchandise, how do you propose to penetrate the Indian market?
Abhijit Pegu: Counterfeiting is an enormous $4 trillion world drawback. If counterfeiting have been a rustic, it could be the fourth largest economic system on this planet. Whereas we are able to’t goal each sector, we’re prioritising high-value and long-shelf-life merchandise.
Our technique aligns with EU requirements, and we’re collaborating with regulators in India. Though our resolution doesn’t instantly generate income for firms, it considerably reduces losses attributable to counterfeiting. Our main strategy includes consciousness campaigns, regulatory collaborations, and partnerships with companies to combine our resolution.
BNE: Are you focusing extra on B2B, B2C, or authorities partnerships?
Abhijit Pegu: Our main mannequin is B2B, serving to companies safe their merchandise and enhance client belief. Nevertheless, we additionally work with regulators and authorities our bodies to affect coverage frameworks. Our imaginative and prescient is to make sure that companies can show their product authenticity seamlessly.
BNE: What are your future plans for scaling up your online business when it comes to market growth?
Abhijit Pegu: As a blockchain firm, our technique revolves round a multi-chain strategy. Every blockchain community has a definite geographical presence—Cardano in Africa and Japan, Algorand in India and Latin America, and Avalanche within the US and Europe. By integrating with a number of chains, we intention to maximise our world attain.
We additionally actively take part in worldwide hackathons, bilateral occasions (India-EU, Indo-Japan, and Indo-Singapore), and networking boards. Our final aim is to construct a world product with a broad market presence.
