Recykal Raises $23 Million to Expand Circular Economy Technology and Global Operations
Recykal, the India-based waste management and circular economy technology startup, has secured $23 million in a bridge funding round comprising both primary investment and secondary share transactions. The round saw participation from existing investors alongside several family offices, reinforcing confidence in the company's long-term strategy to build digital infrastructure for sustainable waste management.
The newly raised capital will be directed toward strengthening Recykal's technology platform, expanding its Deposit Return System (DRS) initiatives, enhancing waste management services, and accelerating international expansion.
Founded in 2016 by Abhay Deshpande, Abhishek Deshpande, Ekta Narain, Vikram Prabakar, and Anirudha Jalan, the Hyderabad-based company develops technology solutions that enable businesses to manage waste streams, improve resource recovery, and comply with environmental regulations.
Recykal has established itself as a technology enabler for the circular economy through a B2B marketplace connecting buyers and sellers of recyclable materials, alongside software solutions that help organizations track plastic and e-waste recycling while meeting regulatory requirements.
The company is also expanding its Deposit Return System (DRS) initiatives, designed to improve the collection and recycling of beverage containers and other recyclable materials.
Chief Executive Officer and Co-founder Abhay Deshpande said:
"The latest funding provides the flexibility to deepen technology investments, scale DRS deployments, and expand into international markets where circularity infrastructure is becoming increasingly important."
According to the company, these investments form part of its broader vision to develop digital infrastructure supporting a globally connected circular economy.
Recykal has already launched pilot DRS programs across several Indian states, including Goa, Himachal Pradesh, Kerala, and Tamil Nadu, while also testing its model in Bhutan as it evaluates additional international opportunities.
The latest funding will also support expansion into Europe and the United Kingdom through organic growth, strategic partnerships, and potential acquisitions. In parallel, the company plans to strengthen its marketplace by enabling both domestic and international sourcing of recyclable materials and circular economy products.
The funding follows Recykal's $13.2 million Pre-Series B round in 2024, led by 360 ONE Asset Management. Backed by Morgan Stanley, the company has now raised more than $35 million since its founding.
Recykal also reported strong financial performance, with gross revenue reaching ₹1,498 crore in FY26, representing a 53.2% increase from ₹978 crore in FY25.
