Recykal Raises USD 23 Million to Scale Circular Economy Technology and Global Expansion
Hyderabad-based circular economy technology company Recykal has secured USD 23 million in a bridge funding round, comprising a mix of primary and secondary capital from existing investors and select new. . .
Hyderabad-based circular economy technology company Recykal has secured USD 23 million in a bridge funding round, comprising a mix of primary and secondary capital from existing investors and select new family offices. The company plans to use the funds to strengthen its technology platform, scale its Deposit Return System (DRS) business and support international expansion initiatives. Funding to Support Technology and DRS ExpansionRecykal said the fresh capital will be directed towards enhancing its digital infrastructure for waste management, accelerating deployments of its Deposit Return System (DRS), and expanding solutions aimed at driving behavioural change in waste collection and recycling. The company also intends to use part of the funding to support its growth in international markets. The transaction also marks the exit of early climate-focused investor Circulate Capital, which reportedly realised around five times its original investment. Revenue Growth and Improved ProfitabilityThe company reported strong financial performance in FY26, with gross revenue rising to ₹1,498 crore from ₹978 crore in FY25, representing growth of more than 53 percent. During the same period, Recykal reduced its losses from 6 percent to 4 percent, reflecting improved operational efficiency and greater business scale. Deposit Return SystemsA key area of investment will be Recykal's Deposit Return System platform. Under the model, consumers pay a refundable deposit on packaging products, which is returned when the packaging is brought back for recycling. The system is designed to improve collection rates and support material recovery. Recykal provides the technology infrastructure, reverse logistics capabilities, consumer engagement tools and verification mechanisms required to operate these systems. The company has already implemented or piloted DRS programmes in Goa, Himachal Pradesh, Kerala, Tamil Nadu and Bhutan. The firm said its reverse vending machine network and digital clearinghouse technology have helped position it as a partner for governments, retailers and beverage companies looking to implement producer responsibility and deposit-return frameworks. International Growth PlansBeyond its domestic operations, Recykal is pursuing opportunities inEuropeand theUnited Kingdomthrough a combination of organic growth, partnerships and potential acquisitions. The company aims to expand its waste management and circular economy technology offerings into global markets. Alongside DRS, Recykal is also growing its Open Marketplace platform, which connects aggregators, recyclers and industrial buyers to facilitate the sourcing and trading of recyclable materials and circular economy commodities. The newly raised capital will also support strategic investments aligned with the company's long-term growth plans. Founded in 2016, Recykal develops digital solutions for waste management and circular economy applications. Its platform connects stakeholders across the recycling value chain, including brands, producers, recyclers, collectors and consumers, while enabling traceability, circular commerce and material recovery initiatives. The company currently operates across India and is expanding its presence in international markets.