Recykal, a business-to-business (B2B) platform for waste management and recycling marketplace, announced that it has raised $22 million from Morgan Stanley India. The funding round also saw participation from returning investors Circulate Capital, Vellayan Subbiah, and Arun Venkatachalam of the Murugappa family.

As per the startup, the raised capital will be utilised to strengthen its technology and expand its B2B marketplace, apart from building hyperlocal waste processing infrastructure. 

Recykal | Waste Commerce Startup

Founded by serial entrepreneur Abhay Deshpande in 2016, Recykal is a Hyderabad-headquartered w-commerce (Waste commerce) company that bridges gaps between waste generators and waste processors. Later in 2017, Abhishek Deshpande and Anirudh Jalan joined as co-founders.

Recykal, through its marketplace platform, brings together sellers of recyclable waste, including hotels, offices, campuses, industries, Resident Welfare Associations (RWA) and the informal aggregators that collect recyclable waste from ragpickers and others.

On the buyer side, the startup works with recyclers of e-waste and plastics, who can now source the bulk of their raw materials from fewer suppliers instead of a long chain of aggregators and others. 

Speaking on the development, Raja Parthasarathy, Managing Director and Co-Head of Morgan Stanley India Infrastructure, said, 

“Waste management in India and many other parts of the world is already a big problem, and it is getting worse. We believe our investment will allow Recykal to play a leadership role in implementing scalable and sustainable solutions to one of society’s biggest challenges.”

The waste management and recycling marketplace is also looking to add new categories of recyclers on the buy-side, including metal, battery and other components. It works with service providers in other geographies to source recyclable waste, formalising the industry through GST-registered transactions. 

Recykal had processed 200,000 tonnes of dry waste and connected over 100 brands, 1,000 corporates and 150 recyclers through its platform. As per the founder, the startup is on track to clock Rs 220 crore in revenue for the financial year 2021-22.

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