In an exclusive interview with Business North East (BNE), Abhijit Pegu, the founder of LW3 Private Limited, provided insights into the company’s journey, challenges, and future plans. LW3 Private Limited, a deep-tech blockchain startup co-founded by Abhijit Pegu and Marungsha Swrang Brahma, was incorporated in December 2022 in Guwahati. The startup, supported by NRL iDEATION and STPI Guwahati, aims to solve the problem of traceability and authenticity crises across industries using blockchain-based Digital Product Passports (DPPs).
Excerpts from the Q&A interview:
Business North East: What inspired you to start LW3 Private Limited, and how has your journey been since its inception?
Abhijit Pegu: It all started with a personal experience when I was at a gym. My instructor recommended a whey protein powder, but my family was skeptical about its authenticity. When I purchased one, I checked its QR and secret code, only to find that it was fake. This incident sparked my curiosity. At that time, I was working at KPMG, where blockchain's potential for anti-counterfeiting was gaining attention. I conducted extensive research and discussed the idea with my co-founder, who was my college junior. That’s how LW3 was born. Today, after two years and eight months, we have received validation from the government, the startup ecosystem, and prospective customers.
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 new EU regulation mandating product identity for traceability. Blockchain naturally fits into this as it provides immutable digital records. We are currently leveraging Algorand and Polygon blockchains and are expanding to Cardano. We aim to develop solutions across multiple chains to avoid geographical and technological limitations.
Regarding commercialisation, we have engaged with India’s largest three-wheeler EV manufacturer for a pilot project. Deep-tech adoption is challenging, and we understand that revenue generation will take time. We are focusing on multiple pilots and proof-of-concept projects across industries like EVs, solar panels, wine, and spices. We expect to start generating revenue by the end of this year.
BNE: How does LW3's Digital Product Passport (DPP) service work, and what industries will be its biggest adopters?
Abhijit Pegu: DPPs function as digital identities for products, ensuring traceability and authenticity. This aligns with global regulations on sustainability and recycling.
Industries such as EVs, electronics, and food & textiles are potential adopters. For instance, in India, we are working on “Battery Aadhaar” to track strategic minerals in EV batteries. Similarly, electronic manufacturers need solutions for recycling compliance, as per the EPR mandate 2022, which will require 80 per cent of products to be recycled by 2028.
BNE: What is your pricing model for traceability and provenance solutions?
Abhijit Pegu: We follow a flexible pricing model based on sector-specific sensitivities. The pricing for an EV battery, which costs around INR 1 lakh, cannot be the same as a tea packet worth INR 100. We are experimenting with subscription models and licensing fees and expect to finalize our pricing by next year.
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BNE: Given that India loses over INR 1 lakh crore annually to counterfeit products, how do you plan to penetrate the Indian market?
Abhijit Pegu: Counterfeiting is a massive $4 trillion global problem. If counterfeiting were a country, it would be the fourth largest economy in the world. While we can’t target every sector, we are prioritising high-value and long-shelf-life products.
Our strategy aligns with EU standards, and we are collaborating with regulators in India. Although our solution does not directly generate revenue for companies, it significantly reduces losses due to counterfeiting. Our primary approach involves awareness campaigns, regulatory collaborations, and partnerships with businesses to integrate our solution.
BNE: Are you focusing more on B2B, B2C, or government partnerships?
Abhijit Pegu: Our primary model is B2B, helping businesses secure their products and improve consumer trust. However, we also work with regulators and government bodies to influence policy frameworks. Our vision is to ensure that businesses can prove their product authenticity seamlessly.
BNE: What are your future plans for scaling up your business in terms of market expansion?
Abhijit Pegu: As a blockchain company, our strategy revolves around a multi-chain approach. Each blockchain network has a distinct geographical presence—Cardano in Africa and Japan, Algorand in India and Latin America, and Avalanche in the US and Europe. By integrating with multiple chains, we aim to maximise our global reach.
We also actively participate in international hackathons, bilateral events (India-EU, Indo-Japan, and Indo-Singapore), and networking forums. Our ultimate goal is to build a global product with a broad market presence.
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