Hyderabad, June 20, 2026: Recykal, a technology platform focused on waste management and circular economy solutions, has raised USD 23 million in a bridge funding round comprising primary and secondary capital from existing investors and a select group of new family offices.
The company said the fresh capital will be used to strengthen its technology platform, expand Deposit Return System (DRS) deployments, scale behavioural change solutions in waste management, and support international growth initiatives.
The announcement comes as Recykal reported strong business growth during FY26. The company recorded gross revenue of ₹1,498 crore, reflecting a 53.2% increase from ₹978 crore in FY25. It also reduced its losses from 6% to 4%, indicating improved operational efficiency.
As part of the transaction, climate-focused investor Circulate Capital completed a full exit, realizing approximately five times returns on its original investment.
A key area of focus for the newly raised capital will be Recykal’s Deposit Return System (DRS) business. The technology-driven model enables consumers to receive refundable deposits on packaging returned for recycling, helping improve collection and recovery rates. Recykal provides the digital infrastructure, reverse logistics, consumer engagement, and verification systems required to operate such programs at scale.
The company has already implemented or piloted DRS initiatives in Goa, Himachal Pradesh, Kerala, Tamil Nadu, and Bhutan. It is also expanding its reverse vending machine (RVM) and digital clearinghouse technology to support governments, retailers, and beverage companies in meeting recycling and producer responsibility requirements.
Beyond India, Recykal is exploring growth opportunities in Europe and the United Kingdom through partnerships, organic expansion, and potential acquisitions. The company is also strengthening its Open Marketplace platform, which connects aggregators, recyclers, and industrial buyers for the sourcing and trading of recyclable materials and circular commodities.
Abhay Deshpande, Founder and Chief Executive Officer of Recykal, said, "Recykal was built on a simple conviction, that the circular economy is fundamentally a technology problem. Over the last year, we have demonstrated that growth and improving unit economics can go hand in hand, delivering over 53% revenue growth while reducing losses. Deposit Return Systems are perhaps the clearest expression of this thesis, combining technology, logistics and behavioural change to transform how packaging is recovered. This bridge round gives us the flexibility to deepen our technology investments, scale DRS deployments, and expand into international markets where circularity infrastructure is rapidly becoming a priority. We remain committed to building the digital backbone for a globally connected circular economy."
The funding is expected to support Recykal’s long-term strategy of building a digitally connected circular economy ecosystem while expanding its footprint in domestic and international markets.
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