Waste management startup Recykal has raised $23 Mn (nearly ₹217 Cr) as part of a bridge funding round, in a mix of primary and secondary deals, from existing backers and a clutch of family offices.
The startup told Inc42 that $17.6 Mn (over ₹166 Cr) was raised via primary transactions, while the remaining $5.4 Mn (nearly ₹51 Cr) comprised secondary deals. It plans to utilise the fresh funds to strengthen its tech stack and support international growth initiatives.
In a statement, Recykal also said that a chunk of the capital will also be utilised to support strategic investments in the circular economy space, accelerate the deployment of its deposit return system (DRS) and scale its waste management solutions.
“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,” said Recykal cofounder and CEO Abhay Deshpande.
While Recykal did not disclose the investors that participated in the round, RoC filings accessed by Inc42 revealed that the startup raised ₹166.5 Cr across two tranches since the onset of this year – ₹128 Cr in February and ₹38.4 Cr in June.
In total, it allocated 35,971 Series D compulsory convertible preference shares (CCPS) at an issue price of ₹46,275 apiece. The round was led by Pidilite Industries vice chairman Ajay Parekh, who infused ₹30 Cr. The fundraise also saw participation from Biological E Ltd. (₹25 Cr), 360 ONE (₹20 Cr), Trinity Combine (₹15 Cr), Strat Ventures (₹15 Cr), among others.
Meanwhile, Recykal also said that early backer Circulate Capital exited the startup during the round, with nearly 5X returns on its original investment.
Founded in 2016 by Abhay, Abhishek Deshpande, Ekta Narain, Vikram Prabakar and Anirudha Jalan, Recykal is a cleantech platform that aims to digitise waste management. Its B2B marketplace connects buyers and sellers of recyclable materials, while its software solutions enable brands to track and trace plastic and e-waste recycling to meet compliance mandates.
The freshly raised funds will also be used to accelerate its newly launched DRS offering, under which consumers pay a refundable deposit on containers at purchase. When the empty container is returned to a collection point, the deposit is refunded. Under this, the startup provides reverse logistics, consumer engagement, reverse vending machines and verification infrastructure for brands.
It claims to be already piloting its DRS initiative across multiple Indian states, including Goa, Himachal Pradesh, Kerala and Tamil Nadu as well as India’s neighbour Bhutan.
The Morgan Stanley-backed platform has raised more than $35 Mn in funding to date. It last raised around $13.2 Mn as a part of its Pre-Series B round from 360 ONE Asset Management in 2024.
Going forward, the Hyderabad-based startup said that it is actively pursuing opportunities in Europe and the United Kingdom through organic expansion, strategic partnerships and potential acquisitions. It also plans to expand its marketplace to enable domestic and global sourcing of recyclable materials and circular commodities.
On the financial front, Recykal said that it closed FY26 with gross revenue of ₹1,498 Cr, up 53.2% from ₹978 Cr in the year ago fiscal.
The funding comes amid growing investor interest in cleantech startups on the back of the country’s ambitious net-zero targets, regulatory sops, and brands prioritising environmental, social and governance (ESG) mandates.
As India looks to secure supplies of critical materials needed for sectors such as electronics, EVs, defence and clean energy, e-waste is increasingly being viewed as a valuable source of resource recovery.
At the heart of all this is India’s waste recycling services market, which is projected to become a $1.5 Bn opportunity by 2031.
The post Recykal Bags $23 Mn To Take Its Waste Management Solutions Global appeared first on Inc42 Media.
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