Recykal raises US$45M to accelerate digital transformation of India’s waste management sector

INDIA – Recykal, a Hyderabad-based digital waste-management technology company, has secured US$45 million in new funding to expand its suite of circular economy platforms across India.

Incorporated in 2015, Recykal has emerged as one of the country’s leading providers of digital tools that connect waste generators, collectors, recyclers, and regulatory bodies through transparent, trackable material flows.

The company says the capital infusion will support the deployment of scalable digital systems designed to address India’s rapidly increasing volume of discarded materials.

Founder and CEO Abhay Deshpande says the company’s mission is to “formalize the circular economy across India, while leveraging digital solutions that enable transparency and traceability for waste streams.”

Recykal’s online and mobile platforms facilitate trading, traceability, and logistics coordination across secondary commodities including plastics, metals, paper, and electronic scrap.

Since 2023, the company reports that its systems have enabled the collection or trading of 12 billion plastic bottles, over 100,000 metric tons of recyclable metal, and approximately 90,000 metric tons of recovered paper and e-waste.

A key challenge in India’s recycling ecosystem has long been the disconnect between informal collectors, who handle an estimated majority of recyclable material, and formalized recyclers, who often struggle to secure a consistent and traceable supply.

“Recyclers with formal facilities struggle more with sourcing reliable material than processing it. The result: inefficiency, pricing disputes, and massive economic loss,” Deshpande notes.

To address this gap, Recykal has launched a digital deposit refund system that incentivizes material return by providing instant payouts.

The company argues that “deposit-linked, instant digital refunds transform waste return from a voluntary, moral action into a rational and repeatable behavior,” promoting a shift in public participation.

Recykal also emphasizes that its platforms are designed to function with or without continuous internet connectivity, an essential feature for integration with India’s vast, decentralized recycling networks.

The company says it aims to directly manage 10% of all discarded materials in India through formal recycling channels in the coming years.

As regulatory scrutiny intensifies under Extended Producer Responsibility (EPR) frameworks, the company says brands increasingly demand verifiable compliance data.

“Accountability is the new brand currency; with regulations rising and customers paying closer attention, our brand suite ensures compliance, traceability, and circularity at every step,” Deshpande adds.

Industry analysts note that Recykal’s growth reflects broader momentum in India’s transition toward more formalized, technology-driven waste management systems, particularly in plastics and e-waste recovery.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE