Recykal, a Hyderabad-based B2B waste management platform, has successfully raised $22 million in funding from Morgan Stanley. This investment marks a significant milestone for Recykal as it continues to innovate in the waste management sector, providing sustainable solutions for businesses and contributing to a greener future.
Recykal, a B2B Waste Management and Recycling Platform, Raises $22 Million to Expand and Enhance Technology
Recykal, a cloud-based B2B waste management and recycling platform, has secured $22 million in funding. The funds will be used to expand its B2B marketplace and strengthen its technological capabilities.
The Indian waste management industry, characterized by its informal and cash-driven nature, has long lagged in innovation compared to the pre-consumption and consumption markets. As the demand for sustainable waste management solutions grows, Recykal has emerged as a key player, leveraging digital technology to connect waste generators with waste aggregators and recyclers.
Founded in 2016 by Abhay Deshpande and headquartered in Hyderabad, Recykal provides end-to-end digital solutions for waste management. The platform has successfully channeled over 200,000 metric tons of dry waste into the circular economy by partnering with over 100 brands, 1,000 corporates, 150 recyclers, and 80 government agencies across India.
The latest funding round, led by Morgan Stanley India, also saw participation from existing investors Circulate Capital, Vellayan Subbiah, and Arun Venkatachalam of the Murugappa family. This investment brings Recykal’s total equity capital raised to $26 million, including a $4 million round in 2020. The funds will be directed towards enhancing Recykal’s technology platform and establishing hyper-local waste processing infrastructure.
Recykal has seen impressive growth, with revenues increasing from Rs. 1.8 crore in FY19 to an expected Rs. 220 crore in FY22. The company plans to add new categories of recyclers, such as metal and batteries, and expand its services to other geographies, further formalizing the waste management industry.
Raja Parthasarathy, Managing Director of Morgan Stanley, commented on the investment, emphasizing the growing global challenge of waste management and Recykal’s potential to lead in delivering scalable and sustainable solutions.