Monday, June 22, 2026: The Hyderabad-based waste-tech startup has secured $23 million (around ₹217 crore) in a bridge funding round. With the latest capital infusion, the startup plans to deepen investments in its technology stack, expand internationally, and accelerate deployment of its Deposit Return System (DRS) solutions, a mechanism increasingly being adopted worldwide to improve recycling collection rates.
“Circular economy infrastructure is becoming mission-critical globally,” said co-founder and CEO Abhay Deshpande, highlighting the company’s focus on scaling DRS deployments in overseas markets.
Founded in 2016, Recykal has built a digital infrastructure layer for waste management. Its platform connects recyclers, brands, producers, and waste processors while helping companies track plastic and e-waste movement through compliance-focused software systems.
Recykal Funding Round Reflects Investor Confidence in Climate Infrastructure
But the bigger story is not the funding itself. It is what the capital signals about where the circular economy market is headed.
The round was led by Ajay Parekh, vice chairman of Pidilite Industries, who invested ₹30 crore. Other participants included Biological E Ltd., 360 ONE, and Trinity Combine.
One notable development from the transaction was the exit of early investor Circulate Capital, which reportedly clocked nearly 5X returns on its investment , a strong signal for India’s growing climate-tech and sustainability startup ecosystem.
At a time when exits remain limited across venture markets, outcomes like these could strengthen investor appetite for circular economy startups.
Recykal’s Real Play: Building the Operating System for Waste
While many waste-management startups focus on logistics or recycling operations, Recykal is positioning itself differently.
The company is building software-led infrastructure that helps brands manage compliance, traceability, and recovery obligations in an increasingly regulated environment.
Its DRS pilots are already active across Goa, Himachal Pradesh, Kerala, Tamil Nadu, and Bhutan. Internationally, the startup is exploring opportunities across Europe and the UK through partnerships and expansion initiatives.
This becomes particularly relevant as governments tighten Extended Producer Responsibility (EPR) norms and corporations face mounting pressure to prove sustainability outcomes with data-backed systems.
In that sense, Recykal is not merely solving a recycling problem. It is building visibility and accountability into the waste value chain.
Growth Momentum Continues
The startup reported FY26 gross revenue of ₹1,498 crore, marking a 53.2% jump from ₹978 crore in the previous fiscal year.
The timing also aligns with broader momentum in India’s cleantech ecosystem, where investor interest is accelerating amid net-zero commitments, rising resource recovery opportunities, and growing awareness around e-waste monetisation.
India’s waste management sector is no longer just about collection and recycling. Increasingly, it is becoming a technology and compliance-driven industry, and Recykal wants to sit at the center of that transformation.
For Recykal, the bridge round appears less like a temporary funding stop and more like preparation for a larger global push.
The latest round for Recykal was backed by existing investors and prominent family offices. The round included $17.6 million in primary capital and $5.4 million through secondary transactions.
