In an exciting development, Recykal, a B2B waste management and recycling marketplace, has successfully raised Rs 110 crore (approximately $13 million) in funding. This investment, led by a Category II scheme managed by 360 ONE Asset Management Limited, marks a significant milestone for the Morgan Stanley-backed firm.
The funding round injects fresh capital into Recykal and enables early-stage investors to realize substantial returns, showcasing the company’s growth trajectory and investor confidence.
Recykal, founded in 2016, has assisted businesses in achieving their Extended Producer Responsibility (EPR) targets, promoting plastic neutrality, managing IT asset disposal, facilitating the sourcing of recyclable materials, and implementing efficient industrial waste management practices.
This latest investment comes after a more than two-year hiatus for Recykal, reflecting renewed investor interest in the company’s mission and potential. The company’s board has approved a special resolution to issue Series D Compulsorily Convertible Preference Shares (CCPS) to raise Rs 80 crore, highlighting investor optimism in Recykal’s prospects.
With a cumulative funding of around $38 million, including previous rounds led by Morgan Stanley India and Circulate Capital, Recykal has demonstrated robust financial performance. Its revenue surged from Rs 190 crore in FY22 to an impressive Rs 745 crore in FY23, marking a remarkable growth of 3.92X. Despite investments in expansion and innovation, the Hyderabad-based firm reported losses of Rs 25.7 crore during the fiscal year ended in March 2023, indicative of its aggressive growth strategy and commitment to sustainability.
As Recykal continues to expand its footprint and innovate in the waste management and recycling sector, the latest investment underscores the growing recognition of the company’s pivotal role in fostering sustainable practices and driving environmental stewardship in the B2B domain.
