Karun Hijau - How Far Can a Light-Asset Social Enterprise Scale?
As Karun Hijau prepares to build an integrated resources hub and attract investors, Handson must decide: Should the company stay true to its partnership-based model, or invest in infrastructure and hiring core staff to achieve deeper impact and growth?
At a glance
Origin
Klang Valley, Malaysia
Founded
2016
Sector
Recycling & Waste Management
Legal Status
Private Limited Company
Abstract
Karun Hijau emerged as a light-asset social enterprise in Malaysia, reimagining urban recycling through a tech-enabled, community-first model. Founded in 2016 by Handson Tan, the enterprise offered a simple yet powerful service: coordinating recycling pickups via WhatsApp and rewarding users with digital “green points” that fostered both behavioral change and social impact. By leveraging gig logistics, digital tools, and grassroots trust, Karun Hijau avoided the costs of owning infrastructure, allowing it to remain agile, even through the COVID-19 crisis. However, as its user base grew and the demand for structured services intensified, limitations of its lean model surfaced.
The case study explores the strategic crossroads facing Karun Hijau as it contemplates transitioning from a decentralized, partnership-based approach to building its Integrated Resources Hub, a centralized facility aimed at enabling larger-scale recycling, refurbishment, and education. This shift would require substantial investment, formal staffing, and a potential redefinition of its core values. Simultaneously, Karun Hijau navigates Malaysia’s fragmented recycling ecosystem, limited regulatory enforcement, and a lack of institutional support for social enterprises.
The study uses qualitative insights to examine the tension between remaining lean versus scaling up for greater impact. It challenges learners to assess whether Karun Hijau should retain its nimble model or embrace structural growth, while staying true to its mission of fostering trust, sustainability, and inclusive community engagement.
Cover Photo: Jilbert Ebrahimi on Unsplash
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(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
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