Quick Take
- Recykal raised Rs 166 Cr ($18 Mn) in primary Series D money, led by Ajay Parekh.
- The allotment values the Hyderabad climate-tech firm at about Rs 2,587 Cr ($280 Mn) post-money.
- Funds back tech, global expansion, and Deposit Refund System rollout across new states by 2027.
In This Article
Climate-tech startup Recykal Series D funding has brought in Rs 166 Cr (about $18 Mn) in primary capital, led by Pidilite Industries Vice Chairman Ajay Parekh, at a post-money valuation near $280 Mn.
The Hyderabad-based digital waste management platform closed the round through two tranches filed since early 2026, per regulatory filings. Existing backers 360 ONE, Strat Ventures, Trinity Combine, and Biological E Ltd also joined. The company says total fresh capital, including secondary deals, reached $23 Mn.
StartupFeed Insight
The standout number here is not the $18 Mn, it is the jump in valuation. Recykal nearly doubled its $142 Mn mark from 2024 while gross revenue grew 53.2% to Rs 1,498 Cr. That ratio matters: investors are pricing growth, not just compliance demand. The Circulate Capital exit at roughly 5X tells early backers the cleantech thesis pays. Founders chasing EPR and circular economy plays should watch Recykal closely. StartupFeed expects a larger institutional round, likely above $40 Mn, within 12 to 18 months as DRS pilots scale and global revenue lands. By StartupFeed Desk.
Recykal Series D Deal Breakdown
The Recykal Series D round issued 35,971 compulsory convertible preference shares (CCPS) at Rs 46,275 each, according to regulatory filings. The structure shows a clear lead investor and broad family-office support.
| Metric | Detail | Notes |
|---|---|---|
| Primary Raise | Rs 166 Cr ($18 Mn) | $23 Mn total with secondary (company) |
| Lead Investor | Ajay Parekh (Rs 30 Cr) | Vice Chairman, Pidilite Industries |
| Round Type | Series D (CCPS) | 35,971 shares at Rs 46,275 each |
| Previous Round | Rs 110 Cr ($13 Mn), April 2024 | Led by 360 ONE Asset |
| Post-Money Valuation | Rs 2,587 Cr ($280 Mn) | Entrackr estimate |
| First Tranche Date | Rs 128 Cr, February 2026 | Balance approved later |
Beyond Parekh, Biological E Ltd put in Rs 25 Cr and 360 ONE Large Value Fund added Rs 20 Cr, regulatory filings show. The spread of angels and family offices points to deep conviction in the waste sector.
About Recykal
Founded in 2016 by Abhay Deshpande and co-founders, Recykal runs a Hyderabad-based digital waste management platform. It connects brands, producers, recyclers, and collectors, helping firms meet EPR (Extended Producer Responsibility) rules and track recyclables. The company closed FY26 with Rs 1,498 Cr gross revenue. Key backers include Morgan Stanley, 360 ONE, and Ajay Parekh.
Why did Ajay Parekh back Recykal?
Ajay Parekh backed Recykal because India’s circular economy is scaling fast on the back of strict EPR mandates and net-zero goals. As Vice Chairman of Pidilite Industries, Parekh brings deep manufacturing and brand context to a firm serving exactly those clients.
This bridge round gives us the flexibility to deepen our technology investments, scale DRS deployments, and expand into international markets, said Abhay Deshpande, Recykal co-founder and CEO.
The thesis is simple. Brands now face hard compliance deadlines, and Recykal sells the software to meet them. Parekh’s Rs 30 Cr cheque, the round’s largest, signals trust in that recurring demand.
How will Recykal use the funds?
Recykal will use the funds to strengthen its tech stack, fund global expansion, and accelerate its Deposit Refund System (DRS) rollout, the company stated. Filings also list working capital and strategic investments in other firms.
The DRS push is the headline bet. Under this model, shoppers pay a refundable deposit on containers and reclaim it on return. Recykal already pilots DRS across Goa, Himachal Pradesh, Kerala, and Tamil Nadu, plus Bhutan. International circularity infrastructure is the next frontier, and this capital funds that early groundwork.
How does Recykal compare to rivals?
Recykal leads India’s digital waste management niche, but the field is filling up. Rivals compete on scale, recycler networks, and compliance tooling rather than pure technology alone.
| Company | Focus | FY26 Revenue |
|---|---|---|
| Recykal | EPR, marketplace, DRS | Rs 1,498 Cr |
| MetalBook | Metals and scrap supply chain | Not disclosed |
| Replenysh | Recovery network platform | Not disclosed |
What sets Recykal apart is its FY26 revenue scale and its early DRS deployments, which few Indian rivals can match today.
What’s Next
Watch for Recykal to expand DRS into more states and at least one international market through 2027. With losses steady at Rs 60 Cr against fast revenue growth, a path to profit will define its next pitch. A larger institutional round looks likely as global pilots mature. Will Recykal turn compliance demand into durable margins before rivals catch up?
Frequently Asked Questions
Last updated: June 21, 2026 at 14:30 IST
Written by Soumya Verma. Published: June 21, 2026. Updated: June 21, 2026. Have a tip? Write to us at editorial@startupfeed.in.
