Recykal, a B2B marketplace for waste and provider of cloud-based solutions to facilitate material flows in waste, has raised $22 million in funding by investment funds managed by Morgan Stanley India. Existing investors Circulate Capital, Vellayan Subbiah, and Arun Venkatachalam from the Murugappa Family also participated in this round. This is the second institutional fundraise by the company after a $4 million round in 2020.
Recykal said it plans to use these funds for strengthening its technology, expanding its B2B marketplace pan India and building hyper-local waste processing infrastructure. This will enable the circular economy and help corporate India in achieving its sustainability goals.
“Recykal Marketplace and other technology driven sustainability solutions have a direct impact on the waste management ecosystem and its stakeholders. These innovations will pave the way to tap into the $100 billion potential that the waste management industry holds. We believe partnering with Morgan Stanley will help us expand our solutions across the entire spectrum of the ecosystem,” said Abhay Deshpande, Founder and CEO, Recykal.
Founded in 2016, Recykal claimed that it has channelized 200,000 tonnes of dry waste through its platform back into the circular economy and away from landfills and water bodies by digitally connecting over 100 brands, 1000+ corporates, 150+ recyclers, 80+ Government agencies across all states and UT’s on one platform.
“Waste management in India and many other parts of the world is already a big problem and it is getting worse. We believe our investment will allow Recykal to play a leadership role in implementing scalable and sustainable solutions to one of society’s biggest challenges”, said Raja Parthasarathy, Managing Director and Co-Head of Morgan Stanley India Infrastructure.
India generates more than 60 million tonnes of municipal solid waste per annum, while a mere 20% is processed or recycled. Rapid urbanization has made the country one of the top waste generators globally. The introduction of tighter regulations such as Extended Producer Responsibility has imposed a high compliance requirement for brand owners.
“Over the past year, we have witnessed and been impressed time and again by Recykal’s continued growth and evolution. With a passionate team and cutting-edge end-to-end digital solutions, the company is making a real difference to advancing the circular economy in India. Recykal’s model is proof that the creation of both financial and environmental value can go hand in hand. We are proud to be supporting Recykal on its growth journey and partnering with them as they continue to scale their impact,” stated Rob Kaplan, Founder and CEO, Circulate Capital.