Recykal, a B2B marketplace for waste and provider of cloud-based solutions to facilitate transparent and traceable 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.
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 (EPR) have imposed a high compliance requirement for brand owners.
Recykal works with several consumer brands to assist them in implementing sustainability solutions in India. The company has also launched B2B Marketplace for waste that connects participants across the waste value chain to enhance efficiency and economics for all.
Recykal was founded in 2016 by Abhishek Deshpande, Anirudha Jalan, Vikram Prabakar and Ekta Narain, to date, Recykal said it has channelised 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, and over 1,000 corporates, 150 recyclers, 80 Government agencies across all states and union territories 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.
“The company is making a 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,” said Rob Kaplan, Founder and CEO, Circulate Capital.