Automated sorting of plastic bottles at a modern recycling facility
Waste management startup Recykal has successfully raised $23 million (approximately ₹217 crore) in a bridge funding round, comprising both primary and secondary transactions from existing investors and family offices. The capital infusion is earmarked for enhancing its technology infrastructure and supporting its global expansion initiatives.
Of the total funding, $17.6 million (over ₹166 crore) was raised through primary transactions, with the remaining $5.4 million (nearly ₹51 crore) from secondary deals. Recykal intends to deploy these funds to bolster its tech stack, accelerate the deployment of its deposit return system (DRS), and scale its waste management solutions, with a portion allocated to strategic investments in the circular economy space.
Abhay Deshpande, co-founder and CEO of Recykal, stated, “This bridge round gives us the flexibility to deepen our technology investments, scale DRS deployments, and expand into international markets where circularity infrastructure is rapidly becoming a priority. We remain committed to building the digital backbone for a globally connected circular economy.”
While specific investor names were not disclosed, regulatory filings accessed by Inc42 indicate that the company raised ₹166.5 crore across two tranches this year. Pidilite Industries vice chairman Ajay Parekh led the round with an investment of ₹30 crore, joined by other notable participants including Biological E Ltd. (₹25 crore), 360 ONE (₹20 crore), Trinity Combine (₹15 crore), and Strat Ventures (₹15 crore).
The funding round also saw an exit for early investor Circulate Capital, which reportedly achieved nearly a five-fold return on its initial investment.
Founded in 2016, Recykal operates as a cleantech platform focused on digitizing waste management. Its offerings include a B2B marketplace for recyclable materials and software solutions that assist brands in tracking and managing waste recycling to meet compliance requirements.
The company is actively promoting its DRS offering, which involves a refundable deposit on containers at the point of sale, incentivizing consumers to return empty containers. This system is currently being piloted in several Indian states, including Goa, Himachal Pradesh, Kerala, and Tamil Nadu, as well as in Bhutan.
Recykal has raised over $35 million to date, with its last funding round being a $13.2 million Pre-Series B investment from 360 ONE Asset Management in 2024. The company is now targeting expansion into Europe and the United Kingdom through organic growth, strategic partnerships, and potential acquisitions, alongside plans to broaden its marketplace for domestic and global sourcing of recyclable materials.
Financially, Recykal reported a gross revenue of ₹1,498 crore for FY26, marking a 53.2% increase from ₹978 crore in the previous fiscal year. This funding round occurs amidst increasing investor interest in cleantech startups, driven by India’s net-zero targets, supportive regulations, and corporate focus on environmental, social, and governance (ESG) mandates.
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