Recove raises US$0.60M pre-seed funding to streamline plastic recycling in India

INDIA – B2B plastic recycling startup Recove has secured Rs 5.3 crore (US$0.60m) in a pre-seed funding round to scale plastic recycling across the country.

The latest round was led by Momentum Capital, with participation from prominent angel investors including Ganesh Natarajan (ex-CEO, Aptech & Zensar), Ashish Goel (co-founder, Urban Ladder), Chaitanya Kejriwal, and Shruti Deorah.

Founded in 2024 by Viral Chhajer, Nirja Bhatt, and Sharan Subaiah, the Bangalore-based startup is building a marketplace for plastic recyclables, aiming to strengthen supply chains and provide pre-processing infrastructure for recyclers.

“This was our first fundraising round. The capital will be invested in critical pre-processing infrastructure in Bangalore and other states, working capital to buy recyclable waste across regions, and general corporate purposes,” Chhajer told The Economic Times.

Recove positions itself as a raw material procurement platform for recyclers, using technology to aggregate scattered plastic waste, sort it, and channel it back into the economy.

“We are tackling two challenges, recycling waste into resources and creating a reliable aggregation mechanism to serve recyclers more efficiently,” Chhajer added.

India’s waste crisis underscores the need for such solutions. The country generates nearly 62 million tonnes of municipal solid waste annually, of which plastic accounts for a significant portion.

While 40% of this waste stream is recyclable, less than 15% is effectively processed, according to industry estimates.

With the government enforcing Extended Producer Responsibility (EPR) rules and pushing for higher recycling rates under its Plastic Waste Management Rules, startups like Recove are well-positioned to play a vital role.

In just one year, Recove claims to have streamlined procurement for more than 30 recycling companies nationwide.

The startup expects to hit a Rs 20 crore (US$2.25m) annual run rate by the end of 2025, with Chhajer noting that the company is already operationally profitable with strong margins.

For Momentum Capital, the investment fits into its broader climate-tech portfolio. The fund has previously backed companies focused on carbon reduction in concrete manufacturing, thermo-mechanical energy storage using CO₂, and mycelium-based packaging made from crop stubble.

“We see an opportunity in waste recycling, and Recove is at the forefront of this crucial shift towards establishing a circular economy. India’s rapidly growing municipal waste problem, coupled with regulatory momentum, creates the perfect landscape for Recove,” said Ankur Shrivastava, managing partner at Momentum Capital.

The fresh funding will accelerate Recove’s plans to expand into new regions, strengthen infrastructure, and cement its role in shaping India’s evolving plastics recycling ecosystem.

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