Waste-tech maker Recykal secures $23 million funds to support expansion

Waste management technology start-up Recykal has announced to have raised $23 million (about Rs 217 crore) in a bridge funding round comprising both primary and secondary investments.

Recykal said that of the total, $17.6 million came from fresh equity issuance, while $5.4 million was generated through secondary transactions.

The round also marked the complete exit of early climate-focused investor Circulate Capital, which reportedly earned nearly five times its initial investment. Existing backers such as 360 One Asset Management, Trinity Combine, Strat Venture LLC and the family office of Ajay Parekh participated in the round. New investors include Biological E Ltd and family offices of Mahima Datla and PVS Raju.

Recykal plans to use the newly raised funds to enhance its technology platform, scale its deposit return system (DRS) and expand behavioural-change solutions in waste management. The company is also targeting international markets as part of its growth strategy.

A key focus area is the expansion of its DRS model, which incentivizes consumers to return used packaging by offering refundable deposits. Recykal supports this ecosystem through digital infrastructure, reverse logistics and verification systems. Additionally, the company is strengthening its open marketplace platform to facilitate sourcing of recyclable materials by connecting aggregators, recyclers and industrial buyers across domestic and global markets.

Founded in 2016 by Abhishek Deshpande, Anirudha Jalan, Vikram Prabakar, and Ekta Narain, Recykal builds digital solutions for the circular economy, linking multiple stakeholders across the waste management value chain.

“Over the last year, we have demonstrated that growth and improving unit economics can go hand-in-hand, delivering over 53% revenue growth while reducing losses,” said founder and CEO Abhishek Deshpande. “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.”

The latest funding follows Recykal’s $13 million pre-Series B round led by 360 One Asset Management in April 2024. Earlier, it raised $22 million in 2022 from Morgan Stanley India and existing investors, after securing $4 million in 2020.

The company reported gross revenue of Rs 1,498 crore in FY26, up from Rs 978 crore in FY25, reflecting over 53% growth.