Recykal, the Hyderabad-headquartered waste management company, has raised $23 million to strengthen its technology platform and fund international expansion.
Recykal has emerged as one of India’s leading technology platforms for waste management and the circular economy. The company announced on Wednesday the successful closure of a $23 million bridge round, comprising a combination of primary and secondary capital from existing investors and a select group of new family offices.
According to the company’s management, the fresh capital will be deployed to strengthen Recykal’s technology platform, accelerate its Deposit Return System (DRS) deployments, expand its behavioural-change solutions in waste management, and support international growth initiatives.
The investment is expected to help the company enter its next phase of growth. In FY26, Recykal reported gross revenue of ₹1,498 crore, a 53.2 per cent increase over ₹978 crore in FY25, while narrowing losses from 6 per cent to 4 per cent — demonstrating improved operating leverage and disciplined execution.
Investment details
As part of the transaction, early climate-focused investor Circulate Capital completed a full exit, realising approximately 5x returns on its original investment.
A core focus of the new capital is the acceleration of Recykal’s DRS business — a technology-led model in which consumers pay a small refundable deposit on packaging that is returned upon recycling, increasing collection and recovery rates.
Recykal provides the digital clearinghouse, reverse-logistics, consumer-engagement and verification infrastructure that enables such schemes to operate efficiently and at scale. The company has established a leading DRS track record across Indian states and neighbouring markets, with deployments and pilots spanning Goa, Himachal Pradesh, Kerala, Tamil Nadu and Bhutan.
Recykal is expanding internationally, taking its waste-management technology and DRS capabilities into global markets. The company is actively pursuing opportunities in Europe through organic expansion, strategic partnerships and potential acquisitions, with the ambition of becoming the technology backbone for circular economy infrastructure worldwide.
Alongside DRS, Recykal is also expanding its Open Marketplace, which enables domestic and global sourcing of recyclable materials and circular commodities by connecting aggregators, recyclers and industrial buyers.
The fresh capital will also support strategic investments aligned with Recykal’s long-term vision of building a fully digitised, globally connected circular economy.
According to Abhay Deshpande, Founder and Chief Executive Officer: “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. We remain committed to building the digital backbone for a globally connected circular economy.”
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