How Recykal Is Growing India's Circular Economy After Raising $23M

Recykal team (L-R): Abhishek Deshpande, Vikram Prabakar, Abhay Deshpande, Anirudha Jalan, and Ekta Narain

Indian climate-tech startup Recykal has raised a $23 million bridge round comprising primary and secondary capital from existing investors and select family offices, marking another milestone in its growth journey as one of the country's leading circular economy platforms.

The new funding will support:

• Expansion of Recykal's technology platform
• Deployment of Deposit Return Systems (DRS)
• Scaling behavioural change initiatives in waste management
• International market expansion
• Strategic investments across the circular economy value chain

The bridge round also enabled an exit for early climate-focused investor Circulate Capital, which reportedly achieved approximately 5x returns on its original investment.

The raise comes amid growing investor interest in climate-tech and sustainability-focused startups globally. According to the International Energy Agency (IEA), clean energy and climate-related investments surpassed US$2 trillion globally in 2024, creating strong tailwinds for circular economy innovators.

What Makes Recykal One of India's Leading Climate-Tech Startups?

Founded in 2016 by Abhay Deshpande, Recykal operates a digital waste management platform that connects producers, brands, recyclers, waste collectors, and compliance stakeholders across the recycling ecosystem.

The Hyderabad-based company helps enterprises:

• Meet Extended Producer Responsibility (EPR) compliance requirements
• Track waste movement through digital infrastructure
• Manage e-waste and recyclable materials
• Access circular economy solutions
• Improve transparency across waste recovery networks

As governments worldwide tighten sustainability regulations, digital infrastructure platforms like Recykal are becoming increasingly critical for businesses seeking compliance and traceability.

How Did Recykal Reach a US$280 Million Valuation?

The bridge round follows Recykal's earlier Series D fundraising, during which the company secured Rs 166 crore (approximately US$18 million).

According to regulatory filings, Recykal issued 35,971 Series D Compulsory Convertible Preference Shares (CCPS) at Rs 46,275 per share.

Recykal Series D Investor Breakdown

Investor	Investment Amount
Ajay Parekh (Vice Chairman, Pidilite Industries)	Rs 30 crore
Biological E Ltd	Rs 25 crore
360 ONE Large Value Fund	Rs 20 crore
Trinity Combine Private Limited	Rs 15 crore
Strat Venture LLC	Rs 15 crore
Clini Pharma LLP	Rs 10 crore
P. Arun Varma	Rs 10 crore
PVS Raju	Rs 10 crore
Other investors	Rs 31.43 crore

Based on the transaction, Recykal was valued at approximately Rs 2,587 crore (US$280 million) on a post-money basis.

The funding was completed in two tranches, with Rs 128 crore secured in February and the remaining amount approved subsequently.

How Fast Is Recykal Growing?

Recykal's financial performance highlights the increasing demand for digital waste management infrastructure in India.

FY26 Performance Snapshot

Metric	FY25	FY26	Growth
Gross Revenue	Rs 978 crore	Rs 1,498 crore	+53.2%
Net Loss	Rs 56 crore	Rs 60 crore	+7.1%

The company generated Rs 1,498 crore in gross revenue during FY26, representing 53.2% year-on-year growth.

While losses increased slightly from Rs 56 crore to Rs 60 crore, the relatively modest rise compared to revenue growth suggests continued investment in expansion, technology development, and market capture.

Why Are Investors Backing Circular Economy Platforms Like Recykal?

India generates more than 62 million tonnes of waste annually, according to government estimates, while global circular economy markets are projected to exceed US$4.5 trillion by 2030.

This creates significant opportunities for technology-enabled platforms that improve recycling efficiency, compliance, and resource recovery.

Investors increasingly view climate-tech infrastructure companies as long-term beneficiaries of:

• Rising ESG adoption
• Stricter environmental regulations
• Growing EPR compliance requirements
• Corporate sustainability commitments
• Expanding global circular economy markets

Recykal's growth trajectory mirrors broader trends seen across emerging climate-tech ecosystems globally, including innovation hubs such as Hub71 in Abu Dhabi, ADGM's sustainable finance ecosystem, and large-scale sustainability initiatives like NEOM's circular economy ambitions in Saudi Arabia.

What Does Recykal's Latest Funding Mean for the Future?

The latest US$23 million bridge round positions Recykal to deepen its leadership in India's waste management and circular economy sector while pursuing international expansion opportunities.

With a US$280 million valuation, over Rs 1,498 crore in annual revenue, and growing institutional backing, Recykal is evolving from a compliance-focused platform into a broader sustainability infrastructure company serving the global circular economy.

As regulatory scrutiny intensifies and sustainability becomes a business imperative, platforms that digitize waste flows, improve traceability, and unlock recycling efficiencies are likely to attract continued investor attention across emerging markets.

 

 

FAQ

1. What is Recykal?
Recykal is an India-based climate-tech company that provides digital waste management and circular economy solutions, helping businesses manage recycling, e-waste, and EPR compliance requirements.

2. How much funding has Recykal raised in its latest round?
Recykal announced a US$23 million bridge round consisting of primary and secondary capital from existing investors and new family offices.

3. What is Recykal's valuation?
Based on recent fundraising activity, Recykal is valued at approximately Rs 2,587 crore, or around US$280 million post-money.

4. Who founded Recykal?
Recykal was founded in 2016 by Abhay Deshpande and is headquartered in Hyderabad, India.

5. How fast is Recykal growing?
Recykal reported FY26 gross revenue of Rs 1,498 crore, representing 53.2% year-on-year growth from Rs 978 crore in FY25.