Source-led article
Recykal Secures $23 Million to Expand Waste Management Solutions Globally
Hyderabad-based cleantech startup Recykal has announced a successful $23 million (approximately ₹217 crore) bridge funding round. This capital injection is earmarked to significantly bolster its technology infrastructure, accelerate its international expansion efforts, and scale the deployment of its advanced waste management solutions, including its Deposit Return System (DRS).
The funding round comprised a mix of primary transactions, accounting for $17.6 million (over ₹166 crore), and secondary deals totaling $5.4 million (nearly ₹51 crore). The investment saw participation from existing backers and several family offices, reflecting continued confidence in Recykal’s mission to digitize and streamline waste management processes.
Key facts
| Metric | Detail |
|---|---|
| Funding Amount | $23 Million (approx. ₹217 Cr) |
| Round Type | Bridge Funding |
| Primary Deals | $17.6 Million |
| Secondary Deals | $5.4 Million |
| Total Funding | Over $35 Million (to date) |
Strengthening Technology and Global Reach
A significant portion of the new funds will be channeled into enhancing Recykal’s tech stack. The company operates a B2B marketplace that connects buyers and sellers of recyclable materials, alongside SaaS solutions designed to help brands track and trace plastic and e-waste recycling for compliance. Strengthening this technological backbone is crucial for improving efficiency and expanding the platform’s capabilities. Recykal cofounder and CEO Abhay Deshpande highlighted that this round provides the flexibility to deepen technology investments and expand into international markets where circularity infrastructure is a growing priority.
Expansion of Deposit Return System (DRS)
Recykal plans to accelerate the deployment of its newly launched Deposit Return System (DRS) offering. Under this system, consumers pay a refundable deposit on containers at the point of purchase, which is then refunded when the empty container is returned to a designated collection point. Recykal supports this initiative by providing reverse logistics, consumer engagement tools, reverse vending machines, and verification infrastructure for brands. The company is already piloting its DRS in several Indian states, including Goa, Himachal Pradesh, Kerala, and Tamil Nadu, as well as in Bhutan, and aims to expand these operations further.
Strategic Investments and Market Opportunities
The capital will also support strategic investments within the circular economy space. Recykal aims to expand its marketplace to facilitate domestic and global sourcing of recyclable materials and circular commodities. The startup is actively exploring growth opportunities in Europe and the United Kingdom through organic expansion, strategic partnerships, and potential acquisitions. This aligns with a global push towards sustainable practices and resource recovery.
Financial Performance and Investor Confidence
Recykal reported strong financial performance for FY26, with gross revenue reaching ₹1,498 crore, a significant 53.2% increase from ₹978 crore in the previous fiscal year. This financial growth, coupled with India’s ambitious net-zero targets and increasing regulatory support for cleantech, has drawn considerable investor interest. The round saw participation from notable investors, including Pidilite Industries vice chairman Ajay Parekh, who infused ₹30 crore, and contributions from Biological E Ltd., 360 ONE, Trinity Combine, and Strat Ventures. Early backer Circulate Capital also made a successful exit during this round, achieving nearly 5X returns on its initial investment.