Recykal raises $22 mn from Morgan Stanley

Hyderabad: Recykal, a B2B marketplace for waste and provider of cloud-based solutions to facilitate transparent and traceable material flows in waste, has raised $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 $4-million round in 2020. Recykal plans to use these funds for strengthening its technology, expanding its B2B marketplace pan India and building hyper-local waste processing infrastructure. This will enable the circular economy and help corporate India in achieving its sustainability goals.

India generates more than 60 million tonnes of municipal solid waste per annum; while a mere 20 per cent is processed or recycled. Rapid urbanisation 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 Marketplace has a direct impact on the waste management ecosystem and its stakeholders. These innovations will pave the way to tap into the $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," said Abhay Deshpande, Founder and CEO, Recykal.