Hyderabad-based circular economy startup Recykal has raised $23 million in a bridge funding round to accelerate technology development and international expansion.
The round includes both primary and secondary capital from existing investors and a group of new family offices.
The company plans to use the funds to strengthen its technology platform, expand its Deposit Return System (DRS) business and support overseas growth initiatives.
Revenue Growth and Improved Profitability
Recykal reported strong financial performance during FY26.
The company posted gross revenue of ₹1,498 crore, up 53.2% from ₹978 crore in FY25.
It also improved profitability by reducing losses from 6% to 4%.
The company said the results reflect stronger operating leverage and disciplined execution.
The transaction also provided an exit opportunity for early investor Circulate Capital.
According to Recykal, the investor realised nearly five times its original investment.
Expanding Deposit Return Systems
A major share of the new capital will support the expansion of Recykal’s Deposit Return System business.
Under the DRS model, consumers pay a refundable deposit on packaging products. They receive the amount back when they return the packaging for recycling.
The company provides the technology infrastructure that powers these programmes. This includes digital clearing systems, reverse logistics and consumer engagement tools.
Recykal has already deployed or piloted DRS programmes in Goa, Himachal Pradesh, Kerala, Tamil Nadu and Bhutan.
The company believes these projects have created a strong foundation for large-scale recyclable collection networks.
Global Expansion Plans
Beyond India, Recykal is targeting international markets.
The company is exploring opportunities in Europe and the United Kingdom through partnerships, organic growth and potential acquisitions.
It aims to position itself as a technology provider for circular economy infrastructure worldwide.
Recykal is also expanding its Open Marketplace platform. The marketplace connects recyclers, aggregators and industrial buyers for sourcing recyclable materials and circular commodities.
Founder on Growth Strategy
“Recykal was built on a simple conviction that the circular economy is fundamentally a technology problem,” said Abhay Deshpande, Founder and Chief, Executive Officer of Recykal.
“Over the last year, we have demonstrated that growth and improving unit economics can go hand in hand. This funding gives us the flexibility to deepen our technology investments, scale DRS deployments and expand internationally,” he added.
Building Circular Economy Infrastructure
Founded in 2016, Recykal develops digital infrastructure for waste management and recycling ecosystems.
Its platform connects brands, producers, recyclers, aggregators, collectors and consumers. The company also offers traceability, material recovery and circular commerce solutions.
As governments and businesses increase their focus on sustainability, demand for digital circular economy infrastructure is expected to grow. Recykal is betting that technology-led waste management solutions will play a central role in that transition.
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