Climate tech startup Recykal bags $13M in pre-Series B funding round

Climate tech startup Recykal raised Rs 110 crore (about $13 million) in a pre-Series B funding round from a Category II scheme led by 360 ONE AssetManagement Limited.

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

The startup said the investment also allowed early-stage investors to achieve an exit.

To date, the Hyderabad startup has secured a total of $35 million in funding. Some of its existing investors include Morgan Stanley, Circulate Capital, Triton Investment Advisors LLP, Ajay Parekh, Executive Vice Chairman of Pidilite Industries Limited, Arun Venkatachalam and Vellyan Subbiah from the Murugappa Group.

Formerly known as IIFL Asset Management Limited, 360 ONE Asset is a part of the 360 ONE group, which specialises in wealth management and alternative investments managing over $54 billion in assets.

“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 utilisation, which we believe is imperative in building a sustainable future,” said Sameer Nath, CIO and Head of Private Equity at 360 ONE Asset.

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According to the National Circular Economy Framework and the Confederation of Indian Industry (CII), the sustainability and circular economy sector in India is expected to reach $2 trillion by 2050.

Founded in 2016 by Anirudha Jalan, Abhishek Deshpande, and Abhay Deshpande, Recykal is a tech-driven marketplace for the circular economy in India. It connects producers, waste generators, facilitators, and various stakeholders in the industry, acting as a crucial intermediary within the waste management ecosystem.

The cloud-based startup operates in multiple sectors, providing solutions for sustainability and circularity in areas, including plastic, paper, metal, e-waste, tyres, and batteries.

To date, Recykal has processed 700,000 metric tons of waste and aims to raise awareness on effective waste management methods, with a network comprising over 400 brands, 500+ recyclers and co-processors, 10,000+ businesses, and 600+ urban local bodies.