Quick Take
- Recykal raised $23 Mn (Rs 217 Cr) in bridge round led by Pidilite’s Ajay Parekh.
- FY26 gross revenue hit Rs 1,498 Cr, up +53.2% YoY from Rs 978 Cr year earlier.
- Funds will accelerate Deposit Return System (DRS) rollouts and back Europe and UK expansion plans.
In This Article
The Recykal Bridge Round raised $23 Mn (Rs 217 Cr) on June 20, 2026, with Pidilite Industries Vice Chairman Ajay Parekh leading at Rs 30 Cr (company announcement).
The Hyderabad-based circular economy platform also reported FY26 gross revenue of Rs 1,498 Cr (about $180 Mn), up +53.2% YoY from Rs 978 Cr in FY25. Losses narrowed from 6% to 4% of revenue (company announcement). The deal mixes Rs 166 Cr in primary capital with Rs 51 Cr in secondary share sales, alongside a full exit by early backer Circulate Capital at roughly 5x returns.
StartupFeed Insight
The Recykal Bridge Round signals a clear shift from pure marketplace play to packaging recovery infrastructure. The shift matters because Goa’s Deposit Refund Scheme already pays Recykal Rs 10 per metric tonne for most packaging categories under an August 2025 contract, with Rs 12 per metric tonne for multi-layered packaging. Founders, brand owners, and ESG (Environmental, Social and Governance) investors should track this round closely. StartupFeed.in expects at least two more Indian states to notify Deposit Return System rules and award operator contracts by March 2027, with Recykal capturing the majority of those tenders given its existing footprint across five jurisdictions. By Soumya Verma.
Inside the $23 Mn Recykal Bridge Round Deal Breakdown
The Recykal Bridge Round is a $23 Mn mixed primary-secondary funding raise that closed in June 2026, comprising Rs 166.5 Cr (about $17.6 Mn) in primary capital and Rs 51 Cr (about $5.4 Mn) in secondary share sales, according to RoC filings reported by Inc42. The startup allocated 35,971 Series D compulsory convertible preference shares (CCPS) at an issue price of Rs 46,275 each across two tranches: Rs 128 Cr in February and Rs 38.4 Cr in June.
| Metric | Detail | Notes |
|---|---|---|
| Total Raise | $23 Mn (Rs 217 Cr) | Primary Rs 166 Cr + secondary Rs 51 Cr |
| Lead Investor | Ajay Parekh, Vice Chairman, Pidilite Industries | Infused Rs 30 Cr |
| Other Participants | Biological E (Rs 25 Cr), 360 ONE (Rs 20 Cr), Trinity Combine (Rs 15 Cr), Strat Ventures (Rs 15 Cr) | Existing investors plus new family offices |
| Round Type | Series D bridge via CCPS | 35,971 shares at Rs 46,275 each |
| Previous Round | Rs 110 Cr Pre-Series B, April 2024 | Led by 360 ONE Asset Management |
| Cumulative Raised | Over $58 Mn | Tracxn pegs lifetime funding at $40.9 Mn pre-round |
| Notable Exit | Circulate Capital, ~5x returns | Full exit from Fund I via secondary sale |
The most striking element is Circulate Capital’s full exit, which delivered a 5x return on its original investment and signals that early circular economy bets in Asia can produce venture-grade outcomes, not just impact metrics.
About Recykal
Recykal, registered as Rapidue Technologies Private Limited, is a Hyderabad-based circular economy platform founded in 2016 by Abhay Deshpande, Abhishek Deshpande, Ekta Narain, Vikram Prabakar, and Anirudha Jalan. The company operates a B2B recyclables marketplace, Extended Producer Responsibility (EPR) compliance software, and a Deposit Return System for packaging recovery. Backers include Morgan Stanley, 360 ONE, and Biological E. Recykal claims over 400 brand partners and more than 700,000 metric tonnes of waste channelised.
How will the Recykal Bridge Round capital be deployed?
Recykal will deploy the new capital across four priority areas: technology platform upgrades, accelerated Deposit Return System rollouts, behavioural change tools for waste collection, and international expansion in Europe and the United Kingdom (company announcement).
“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,” said Abhay Deshpande, Founder and Chief Executive Officer, Recykal.
The international thrust is the headline shift. Recykal already runs its Deposit Return System platform across Goa, Himachal Pradesh, Kerala, Tamil Nadu, and Bhutan, but Europe and the UK carry stricter mandatory recycling targets and larger per-capita packaging volumes. The Goa Coastal and Environment Management Society awarded Recykal the System Operator role in August 2025 at Rs 10 per metric tonne for most packaging categories, with Rs 12 per metric tonne for multi-layered packaging (Navhind Times).
Who competes with Recykal in the circular economy?
Recykal competes primarily on technology depth and Deposit Return System execution against a mix of waste-tech marketplaces and circular commerce platforms across India and Southeast Asia.
| Company | Focus | Last Known Funding |
|---|---|---|
| Recykal | DRS, B2B marketplace, EPR compliance | $58 Mn+ cumulative (post-bridge) |
| MetalBook | Metals recycling marketplace | $5 Mn Series A |
| The Kabadiwala | Urban collection, DRS pilots | Undisclosed round, August 2025 |
What makes Recykal different is the combined FY26 revenue base of Rs 1,498 Cr and a state-level DRS operator contract under the Goa Deposit Refund Scheme portal, neither of which competitors currently match.
What does the Recykal Bridge Round signal for India’s climate-tech investors?
The Recykal Bridge Round arrives as Indian climate-tech sees rising investor appetite tied to net-zero targets, regulatory frameworks, and ESG mandates inside corporate procurement. India’s circular economy is estimated by the Confederation of Indian Industry to grow to a $2 Tn opportunity by 2050, with packaging waste recovery and e-waste recycling forming two of the largest segments. The round also confirms that secondary liquidity is now available for Series C and Series D climate startups, an important signal for limited partners who have historically waited 8 to 10 years for impact-fund exits. Cleantech and circular economy funds raised this calendar year may look to Recykal as a benchmark on the path from EPR compliance to DRS infrastructure plays.
What’s Next
Recykal targets two parallel milestones over the next 12 months. The first is group-level profitability, building on the FY26 loss reduction from 6% to 4% of revenue. The second is at least one announced European or UK partnership, acquisition, or DRS contract by the close of FY27. Will Recykal close its first overseas Deposit Return System mandate before global competitors enter Indian markets?
Frequently Asked Questions
Last updated: June 21, 2026 at 10:30 IST
Written by Soumya Verma. Published: June 21, 2026. Updated: June 21, 2026. Have a tip? Write to us at editorial@startupfeed.in.
