Waste management firm Recykal raises USD 23 million bridge round

Hyderabad [India], June 23: Recykal, a technology platform for waste management and the circular economy said that it has raised USD 23 million bridge round, comprising a combination of primary and secondary capital from existing investors and a select group of new family offices.

The company said it will deploy this fresh capital towards strengthening Recykal's technology platform, accelerating its Deposit Return System (DRS) deployments, expanding its behavioural change solutions in waste management, and supporting international growth initiatives.

The company enters its next phase of growth with strong business momentum. In FY26, Recykal reported gross revenue of ₹1,498 crore, representing a 53.2% increase over ₹978 crore in FY25, while reducing losses from 6% to 4%, demonstrating improved operating leverage and disciplined execution.

As part of the transaction, early climate-focused investor Circulate Capital completed a full exit, realising approximately 5x returns on its original investment.

Pioneering Deposit Return Systems A core focus of the new capital is the acceleration of Recykal's Deposit Return System (DRS) business, a technology-led model in which consumers pay a small refundable deposit on packaging that is returned upon recycling, dramatically increasing collection and recovery rates.

Recykal provides the digital clearinghouse, reverse-logistics, consumer engagement and verification infrastructure that enables such schemes to operate efficiently and at scale.

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Recykal has established a leading DRS track record across multiple Indian states and neighbouring markets, with deployments and pilots spanning Goa, Himachal Pradesh, Kerala, Tamil Nadu and Bhutan, laying the operational and technological foundations for a scalable recyclable-collection ecosystem.

The company's reverse vending machine (RVM) and clearinghouse technology stack positions Recykal as a preferred partner for governments, beverage producers and retailers implementing producer responsibility and deposit-return mandates.

Building a Global Circular Economy Platform Beyond India, Recykal is expanding internationally, taking its waste-management technology and DRS capabilities into global markets.

The company is actively pursuing opportunities in Europe and the United Kingdom through organic expansion, strategic partnerships and potential acquisitions, with the ambition of becoming the technology backbone for circular economy infrastructure worldwide.

Alongside DRS, Recykal is also expanding its Open Marketplace, enabling domestic and global sourcing of recyclable materials and circular commodities by connecting aggregators, recyclers and industrial buyers. The fresh capital will also support strategic investments aligned with Recykal's long-term vision of building a fully digitised, globally connected circular economy.

Commenting on the fundraise, Abhay Deshpande, Founder and Chief Executive Officer of Recykal, said, "This bridge round gives us the flexibility to deepen our technology investments, scale DRS deployments, and expand into international markets where circularity infrastructure is rapidly becoming a priority. We remain committed to building the digital backbone for a globally connected circular economy."

He said, "Over the last year, we have demonstrated that growth and improving unit economics can go hand in hand, delivering over 53% revenue growth while reducing losses. Deposit Return Systems are perhaps the clearest expression of this thesis, combining technology, logistics and behavioural change to transform how packaging is recovered."

Founded in 2016, Recykal is a Hyderabad-based technology company building digital infrastructure for waste management and the circular economy.

Its platform connects and empowers the entire value chain, including brands, producers, recyclers, aggregators, collectors and consumers, traceability, circular commerce, Deposit Return Systems and material recovery solutions at scale.

Recykal operates across India and is expanding into international markets, with a growing presence in Deposit Return System deployments worldwide.

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