Phool: Valuation and Due Diligence for Impact Investment
Background
Phool, based in Kanpur, is a biomaterials startup known for turning floral waste from temples and mosques into eco-friendly products. Its portfolio includes incense sticks, vermicompost, and sustainable alternatives to Styrofoam and leather. Founded in 2017, the company employs over 300 women from marginalized communities and has been widely recognised for its circular economy model and environmental impact. Phool has become a leading example of how sustainability and social impact can go hand in hand with scale.
The Challenge
As Phool prepared for its next stage of growth, the company attracted interest from high-profile investors. Among them was actor Alia Bhatt, who was keen to back the startup for both its mission and market potential. For the investment to move forward, the promoters needed a professional valuation and due diligence exercise. The goal was to give both the company and the investor confidence in the numbers, the business model, and the long-term outlook.
Mantraa’s Role
Mantraa partnered with Phool to run the due diligence and valuation process.
- Conducted a valuation exercise that reflected not only financial performance but also the unique impact-driven model of the company.
- Assessed business fundamentals including supply chain, scalability, and unit economics.
- Reviewed compliance, contracts, and operational processes as part of due diligence.
- Presented a clear picture to the investor and promoters, helping bridge impact with financial sustainability.
The Impact
The exercise gave Alia Bhatt confidence to move forward with her investment in Phool. For the promoters, it validated the company’s worth and created a transparent base for future fundraising rounds. Beyond the numbers, the process showed how an impact-focused business could stand up to the same rigour as any high-growth startup.
Key Takeaway
Impact businesses still need robust numbers. Valuation and due diligence are what give investors confidence that purpose and profitability can scale together.
Looking Ahead
With funding secured and a strong validation process completed, Phool is better positioned to expand its biomaterials portfolio, scale exports, and deepen its social and environmental footprint.
Looking for investors who believe in your mission?
Mantraa helps impact-driven startups with valuations and due diligence that connect purpose with financial credibility.
