Hyderabad-based circular economy technology company Recykal has raised USD 23 million in a bridge funding round comprising primary and secondary capital from existing investors and select family offices. The fresh investment will support the company’s technology expansion, strengthen its Deposit Return System (DRS) platform, and accelerate its international growth strategy.
The funding comes as Recykal continues to expand its digital waste management ecosystem. The company plans to enhance its technology infrastructure, scale deployments of its DRS solutions and invest in initiatives that encourage responsible waste collection and recycling. Part of the capital will also be used to strengthen its presence in overseas markets.
The funding round also marks the successful exit of early climate-focused investor Circulate Capital, which reportedly achieved nearly five times the value of its original investment, highlighting the company’s strong growth since its early funding stages.
Recykal reported robust financial performance during FY26, with gross revenue increasing to ₹1,498 crore, up from ₹978 crore in FY25, reflecting growth of more than 53%. The company also improved profitability by reducing its losses from 6% to 4%, driven by higher operating efficiency and business expansion.
A major focus of the new investment will be the company’s Deposit Return System (DRS) platform. Under this model, consumers pay a refundable deposit when purchasing packaged products, which is returned after the packaging is collected and sent for recycling. The approach is designed to improve recycling rates, reduce waste leakage and strengthen the circular economy.
Recykal provides the digital infrastructure required to operate DRS programmes, including reverse logistics, consumer engagement platforms, verification systems and digital clearinghouse technology. The company has already launched or piloted DRS initiatives in Goa, Himachal Pradesh, Kerala, Tamil Nadu and Bhutan, working with governments, retailers and consumer goods companies.
Beyond India, Recykal is pursuing expansion opportunities across Europe and the United Kingdom through strategic partnerships, acquisitions and organic growth. The company is also scaling its Open Marketplace platform, which connects waste aggregators, recyclers and industrial buyers to facilitate the trading and sourcing of recyclable materials.
Founded in 2016, Recykal has built a digital platform that connects producers, brands, recyclers, collectors and consumers across the recycling value chain. By improving traceability, material recovery and circular commerce, the company aims to accelerate the transition towards a more sustainable and resource-efficient economy in India and global markets.
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