Recykal’s US$23M bridge funding boosts DRS, recycling tech for global expansion

INDIA – Hyderabad-based Recykal has raised US$23 million in a bridge funding round comprising primary and secondary capital from existing investors and new family offices, as the company reported 53 per cent revenue growth in FY26 while reducing losses from 6 to 4 per cent.

The funding will strengthen Recykal’s technology platform for recycling infrastructure, expand its Deposit Return System (DRS) deployments, and accelerate international growth across Europe and the UK. 

Early climate-focused investor Circulate Capital exited through the transaction, realising approximately five times returns on its original investment. 

Technology Investments and DRS Deployment Drive Waste Management Innovation

Recykal provides digital infrastructure for waste management, including traceability solutions, circular commerce platforms, and reverse logistics systems that connect brands, producers, recyclers, and collectors. 

A key area of investment is the DRS business, where consumers pay a refundable deposit on packaging products and receive it back upon return for recycling. 

The company has already established DRS deployments or pilots across Goa, Himachal Pradesh, Kerala, Tamil Nadu and Bhutan. 

Its reverse vending machine network and digital clearinghouse technology have strengthened its position as a partner for governments, retailers and beverage companies working to meet producer responsibility requirements. 

The company’s Open Marketplace platform facilitates sourcing and trading of recyclable materials, connecting aggregators, recyclers and industrial buyers across domestic and international markets.

Revenue Growth and International Expansion Plans

Over the last year, Recykal has demonstrated that growth and unit economics can go hand-in-hand, delivering over 53 per cent revenue growth while reducing losses. 

Founder and CEO Abhishek Deshpande stated that the bridge round gives the company flexibility to deepen technology investments, scale DRS deployments, and expand into international markets where circularity infrastructure is rapidly becoming a priority. 

The company is pursuing opportunities in Europe and the United Kingdom through organic expansion, strategic partnerships and potential acquisitions. 

Recykal, founded in 2016 and recognised as a World Economic Forum Global Innovator, has successfully channelled over 1.2 million metric tonnes of waste and partners with more than 620 brands and 675 certified recyclers. 

The company’s broader ambition is to become a technology backbone for circular economy infrastructure in multiple regions, supporting large-scale recycling and waste management programs as governments and industries place greater emphasis on sustainability and resource recovery.

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