NowPurchase raises US$9.6M to scale metal scrap recycling for India’s packaging sector

INDIA – NowPurchase has secured ₹80 crore (approximately US$9.6 million) in a funding round led by Bajaj Finserv to accelerate technology development and expand scrap recycling infrastructure, targeting India’s rapidly growing metal manufacturing and packaging industries.

The capital injection will bolster the company’s technology-driven platform for modernizing metal procurement.

The investment highlights growing confidence in NowPurchase’s strategy to address supply chain inefficiencies, driven by demand for sustainable sourcing and circular economy practices.

India’s US$21.4 Billion Recycling Opportunity

India’s metal recycling market is projected to reach US$21.4 billion by 2030, growing at 7.3 percent annually.

Demand from construction, automotive, and packaging sectors, coupled with government sustainability initiatives, drives this expansion.

NowPurchase’s focus on scrap recycling aligns with Extended Producer Responsibility requirements for non-ferrous metals, which are formalizing the recycling ecosystem and creating demand for authorized processors.

Technology as a Differentiator

NowPurchase sets itself apart with its SaaS platform MetalCloud and a WhatsApp bot for real-time updates, introducing transparency into a market still dominated by informal players.

Previous funding, including a US$6 million round in September 2024, supports its growth path, with plans for a potential IPO in three to five years.

Challenges Ahead

However, significant hurdles remain. India’s metal scrap sector is largely unorganized, with informal collectors and recyclers controlling much of the supply chain.

Integrating with or competing against these informal networks is a major challenge.

Competitors like Gravita India have a longer track record in physical recycling, with a P/E ratio of 25.95 and ROE of 22.56 percent.

While NowPurchase’s tech focus is an advantage, its success depends on effectively integrating physical processing and building strong supplier networks.

The Bottom Line

For the packaging industry, which relies heavily on metal for cans, closures, and containers, a transparent, efficient scrap supply chain means more consistent access to recycled feedstock and greater ability to meet recycled content targets.

Mandated recycled content in non-ferrous metals and the expanding EPR framework are significant market drivers.

By investing in research and recycling infrastructure, NowPurchase aims to be a key partner for manufacturers needing reliable, sustainable raw material sourcing, supporting India’s manufacturing growth ambitions.

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