Hyderabad-based B2B waste management and recycling marketplace Recykal has recently announced a significant milestone in its growth journey, raising Rs 110 crore or $13 million in a pre-Series B funding round. The investment comes from a Category II scheme managed by 360 ONE Asset Management Limited, formerly known as IIFL Asset Management Limited.
360 ONE Asset is a prominent player in India’s alternate asset management landscape and is part of the 360 ONE group, boasting assets under management exceeding $54 billion. This infusion of funds not only bolsters Recykal’s financial standing but also signifies a vote of confidence from one of India’s leading wealth and alternates-focused institutions.
The pre-Series B round marks a significant achievement for Recykal, enabling early-stage investors to realize substantial returns on their investments. This influx of capital underscores the growing investor interest in sustainable solutions and the circular economy, a domain where Recykal has established itself as a pioneer.
Recykal’s core mission revolves around formalizing the circular economy in India, offering a managed marketplace that digitizes waste management processes. The startup’s innovative approach encompasses various waste categories, including plastic, paper, metal, e-waste, tyres, and batteries, catering to the diverse needs of stakeholders across the waste management and recycling ecosystem.
Abhay Deshpande, Founder & CEO of Recykal, expressed his enthusiasm about the investment, stating, “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.”
Recykal has not only addressed significant challenges faced by the industry but has also made remarkable strides in promoting effective waste management practices. The startup boasts channeling 7,00,000 metric tons of waste and has cultivated a robust network comprising over 400 brands, 500+ recyclers and co-processors, 10,000+ businesses, and 600+ urban local bodies.
Investors have lauded Recykal’s progress and scale in fostering circularity within the value chain, departing from the conventional linear “take-make-dispose” model. Sameer Nath, CIO and Head of Private Equity at 360 ONE Asset, remarked, “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’s latest funding round adds to its existing pool of $35 million in funding, with notable backers including Morgan Stanley, Circulate Capital, Triton Investment Advisors, and executives from prominent entities like Pidilite Industries and the Murugappa Group. With projections estimating the sustainability and circular economy space to burgeon into a $2 trillion opportunity in India by 2050, Recykal remains poised to play a pivotal role in shaping India’s sustainable future.
