New Delhi, June 22 -- Recykal, a technology platform for waste management and the circular economy, has raised $23 million (around Rs 217 crore) in a bridge round comprising a mix of primary and secondary capital.

Of the total, around $17.6 million was raised through a primary issuance, while the remaining $5.4 million came through secondary transactions.

The company, operated by Rapidue Technologies Pvt Ltd, said early climate-focussed investor Circulate Capital, currently raising its second Asia-focussed fund, made a full exit through the transaction, realizing around 5x returns on its original investment.

The round saw participation from existing investors, including 360 One Asset Management Ltd, Trinity Combine, Strat Venture LLC, and the family office of Ajay Parekh, vice chairman of Pidilite Industries. New investors included biotechnology company Biological E Ltd and the family offices of Mahima Datla and PVS Raju.

Growth plans

Recykal said it will use the fresh capital to strengthen its technology platform, accelerate deployment of its deposit return system (DRS), expand its behavioural-change solutions in waste management, and support its international growth initiatives.

The company is especially focussed on scaling its DRS business, under which consumers pay a small refundable deposit on packaging that is returned upon recycling. Recykal provides the digital clearinghouse, reverse logistics, consumer engagement and verification infrastructure for the system.

The company is also expanding internationally by taking its waste-management technology and DRS capabilities to global markets. Further, it is scaling its open marketplace platform to enable domestic and international sourcing of recyclable materials and circular commodities by connecting aggregators, recyclers and industrial buyers.

Background, investor backing

Founded in 2016 by Abhishek Deshpande, Anirudha Jalan, Vikram Prabakar and Ekta Narain, Recykal is building digital infrastructure for waste management and the circular economy. Its platform connects stakeholders across the value chain, including brands, producers, recyclers, aggregators, collectors and consumers, and provides solutions in traceability, circular commerce, deposit return systems and material recovery.

The company said it ended FY26 with gross revenue of Rs 1,498 crore, up from Rs 978 crore in FY25.

"Over the last year, we have demonstrated that growth and improving unit economics can go hand-in-hand, delivering over 53% revenue growth while reducing losses," said founder and CEO Abhishek Deshpande. "This bridge round gives us the flexibility to deepen our technology investments, scale DRS deployments, and expand into international markets where circularity infrastructure is rapidly becoming a priority."

The latest funding comes more than two years after 360 One Asset Management led Recykal's $13 million pre-Series B round in April 2024.

Earlier, in 2022, the startup had secured $22 million from funds managed by Morgan Stanley India along with existing investors Circulate Capital, Vellayan Subbiah, and Arun Venkatachalam of the Murugappa family.

In 2020, it raised $4 million from a host of investors, including Circulate Capital.

In 2019, Recykal raised $2 million in a pre-Series A round from Triton Investment Advisors, the family office of Ajay Parekh and existing investor Vijay Acharya, former managing director at Bank of Singapore.

Published by HT Digital Content Services with permission from VC Circle.