Hyderabad-based Recykal raises Rs 110Cr in a pre-Series B round

Hyderabad-based B2B waste management and recycling marketplace Recykal has raised Rs 110 crore or $13 million in a pre-series B funding round from a Category II scheme managed by 360 ONE Asset Management Limited (earlier known as IIFL Asset Management Limited) (360 ONE Asset).

360 ONE Asset is one of India’s largest alternate asset managers and part of the 360 ONE group, a wealth and alternates-focused institution with more than $ 54 billion in assets under management. 

Notably, The round has also allowed early-stage investors to achieve a multi-bagger exit.

What does Recykal do?

Recykal is at the forefront of formalising the circular economy in India. The startup is recognised as the pioneer of the managed marketplace for the Circular Economy in India, enabling all stakeholders across waste management and recycling with a digitised waste management ecosystem.

It operates in several categories, offering circularity and sustainability solutions, including plastic, paper, metal, e-waste, tyres, and batteries.

"As we embark on the next phase of our growth journey, this investment will enable us to drive further innovation in our technology, products and solutions. Thus, this will pave the way for us to amplify our growth and strengthen our position as a trusted sustainability partner," said Abhay Deshpande, Founder & CEO of Recykal.

Addressed challenges faced by the industry

Recykal said it has successfully addressed some of the industry's most significant challenges, channelling 7,00,000 MT of waste and continuing to raise awareness about effective waste management practices.

The startup claims to have a network of over 400 brands, 500+ recyclers and co-processors, 10,000+ businesses, and 600+ urban local bodies.

What did the investors say about Recykal?

Sameer Nath, CIO and Head of Private Equity at 360 ONE Asset said, “The company has demonstrated significant progress and scale in achieving circularity of value chain, as opposed to the traditional linear “take-make-dispose” approach, by solving for demand aggregation and resource utilization, which we believe is imperative in building a sustainable future.” 

Recykal has raised a total of $35 million in funding to date, and existing investors include Morgan Stanley, Circulate Capital, Triton Investment Advisors, Ajay Parekh, Executive Vice Chairman, Pidilite Industries, Arun Venkatachalam and Vellyan Subbiah from the Murugappa Group.

According to the National Circular Economy Framework and the CII, the sustainability and circular economy space is estimated to grow to a $2 tn opportunity in India by 2050.