News in Short

• Recykal reported FY26 gross revenue of ₹1,498 crore, marking a 53.2% year-on-year increase.
• Recykal has raised $23 million in a bridge funding round through primary and secondary transactions.
• The startup plans to expand globally, with a focus on Europe and the United Kingdom.
• Fresh capital will help strengthen its technology platform and scale deposit return system deployments.

India-based waste management startup Recykal has secured $23 million in fresh funding as it looks beyond domestic markets and accelerates its push into the global circular economy. The company plans to use the capital to strengthen its technology platform, expand internationally, and scale solutions that help businesses manage recyclable waste more efficiently.

The funding comes at a time when governments and corporations worldwide are under increasing pressure to improve recycling rates, reduce waste, and meet sustainability targets. As a result, companies building digital infrastructure for waste management are attracting growing investor attention.

Why Did Recykal Raise Fresh Capital?

Recykal said the funding round includes $17.6 million raised through primary transactions, while the remaining $5.4 million came through secondary deals.

The company plans to deploy the capital across multiple growth areas. These include strengthening its technology stack, expanding operations into international markets, investing in circular economy opportunities, and accelerating its Deposit Return System (DRS) platform.

According to Recykal co-founder and CEO Abhay Deshpande, the bridge round provides flexibility to deepen technology investments and expand into markets where circularity infrastructure is becoming a major priority.

The company did not publicly disclose all participating investors. However, regulatory filings show that it raised ₹166.5 crore through multiple tranches this year. The round saw participation from several prominent investors and family offices, including Pidilite Industries Vice Chairman Ajay Parekh, Biological E Ltd., 360 ONE, Trinity Combine, and Strat Ventures.

An important development from the transaction was the exit of early investor Circulate Capital. Recykal said the investor achieved nearly 5X returns on its original investment.

What Exactly Does Recykal Do?

Founded in 2016, Recykal operates at the intersection of waste management, recycling, compliance, and digital technology.

The startup runs a B2B marketplace that connects buyers and sellers of recyclable materials. In addition, it offers software solutions that help brands track and verify plastic and e-waste recycling activities. This has become increasingly important as governments introduce stricter environmental regulations and compliance requirements.

The platform helps businesses manage waste streams digitally rather than relying on fragmented and manual processes. As sustainability reporting becomes more critical, companies are seeking better visibility into how waste is collected, processed, and recycled.

This is where Recykal positions itself as a technology enabler rather than just a recycling company.

How Important Is the Deposit Return System Opportunity?

One of the biggest focus areas for the startup is its Deposit Return System initiative.

Under a DRS model, consumers pay a small refundable deposit when purchasing products packaged in containers. Once those containers are returned to designated collection points, consumers receive their deposits back.

While the concept is widely used in several international markets, adoption remains limited across many regions.

Recykal’s platform supports the entire ecosystem. It provides reverse logistics, consumer engagement tools, verification systems, and reverse vending machine infrastructure for participating brands.

The company said it is already running DRS pilots across Goa, Himachal Pradesh, Kerala, Tamil Nadu, and Bhutan.

As governments search for more effective ways to improve recycling rates and reduce landfill waste, DRS systems are increasingly emerging as a preferred policy tool. That trend could create significant growth opportunities for technology providers such as Recykal.

Why Is Recykal Looking at Europe and the UK?

The company’s international ambitions appear closely tied to changing global regulations.

Europe and the United Kingdom are among the most active regions when it comes to circular economy policies. Governments are introducing stricter recycling mandates, extended producer responsibility rules, and waste traceability requirements.

These regulations create demand for digital platforms that can track materials, verify recycling activities, and simplify compliance processes.

Recykal said it is exploring opportunities through organic expansion, strategic partnerships, and potential acquisitions. The company also plans to expand its marketplace capabilities to support both domestic and international sourcing of recyclable materials and circular commodities.

This move could transform Recykal from an India-focused platform into a global waste management technology player.

Strong Revenue Growth Signals Market Demand

Alongside the funding announcement, Recykal revealed strong financial performance.

The startup reported FY26 gross revenue of ₹1,498 crore, up 53.2% from ₹978 crore in the previous fiscal year.

The growth reflects rising demand for recycling infrastructure, waste traceability, and compliance-focused solutions. It also highlights how environmental regulations are creating new business opportunities for technology-driven platforms.

Investor interest in the sector is also being supported by India’s net-zero ambitions, growing ESG commitments from businesses, and increasing recognition of e-waste as a valuable resource recovery opportunity.

Industry estimates suggest India’s waste recycling services market could reach $1.5 billion by 2031, creating substantial room for growth.

Conclusion

The latest funding round positions Recykal to pursue a much larger opportunity than traditional recycling. By combining technology, compliance tools, recycling marketplaces, and DRS infrastructure, the company is building a digital layer for the circular economy. As governments tighten environmental regulations and businesses seek better waste accountability, Recykal could become one of the most closely watched players in the global waste management technology sector.