Recykal, a B2B marketplace for waste and provider of cloud-based solutions to facilitate transparent and traceable material flows in waste, has raised US$ 22 million in funding by investment funds managed by Morgan Stanley India. Existing investors, Circulate Capital, Vellayan Subbiah, and Arun Venkatachalam from the Murugappa Family also participated in this round. This is the second institutional fundraise by the company after a US$ 4 million round in 2020.

India generates more than 60 million tonnes of municipal solid waste per annum, while a mere 20% is processed or recycled. Rapid urbanization has made the country one of the top waste generators globally. The introduction of tighter regulations such as Extended Producer Responsibility (“EPR”) has imposed a high compliance requirement for brand owners.

Recykal already works with several of the world’s largest consumer brands to assist them in implementing sustainability solutions in India and the company has in parallel launched India’s first B2B Marketplace for waste that connects participants across the waste value chain to enhance efficiency and economics for all. Recykal believes that productivity and efficiency is enhanced with emerging technologies such as AI, ML, DRS etc.

Recykal plans to use these funds to strengthen its technology, expand its B2B marketplace pan India, and build hyper-local waste processing infrastructure. This will enable the circular economy and help corporate India achieve its sustainability goals.

Founded in 2016, Recykal has been recognized with several national awards and was the first Indian start-up in the World Economic Forum’s Circular Accelerator Program 2021. So far, Recykal has channelized 200,000 tonnes of dry waste through its platform back into the circular economy and away from landfills and water bodies by digitally connecting 100+ brands, 1000+ corporates, 150+ recyclers, 80+ Government agencies across all states and UT’s on one platform.

Abhay Deshpande, founder and CEO, Recykal, said, “Recykal Marketplace and other technology-driven sustainability solutions have a direct impact on the waste management ecosystem and its stakeholders. These innovations will pave the way to tap into the US$ 100 billion potential that the waste management industry holds. We believe partnering with Morgan Stanley will help us expand our solutions across the entire spectrum of the ecosystem.”

“We are excited to work with a management team that is at the heart of India’s waste management ecosystem. Their vision for the company is inspiring and they have been executing consistently, even at the peak of the COVID-19 crisis. 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,” said Raja Parthasarathy, managing director and co-head of Morgan Stanley India Infrastructure.

Rob Kaplan, founder and CEO, Circulate Capital, said, “Over the past year, we have witnessed and been impressed time and again by Recykal’s continued growth and evolution. With a passionate team and cutting-edge end-to-end digital solutions, the company is making a real difference in advancing the circular economy in India. Recykal’s model is proof that the creation of both financial and environmental value can go hand in hand. We are proud to be supporting Recykal on its growth journey and partnering with them as they continue to scale their impact.”