Recykal Secures Rs 166 Crore in Series D Funding for Climate-Tech Innovations

Recykal, the Hyderabad-based climate-tech platform for waste management and the circular economy, has closed a $23 million bridge round comprising primary and secondary capital from existing investors along with a select group of new family offices.

As part of the transaction, early investor Circulate Capital fully exited, realising approximately 5x returns on its original investment.

The fresh capital will go toward strengthening Recykal’s technology platform, scaling its Deposit Return System (DRS) deployments, expanding behavioural-change solutions in waste management, and supporting international growth – particularly in Europe and the UK, through organic expansion, partnerships, and potential acquisitions.

Recykal already has DRS pilots and deployments across Goa, Himachal Pradesh, Kerala, Tamil Nadu, and Bhutan, alongside its Open Marketplace for sourcing recyclable materials globally.

On financials, Recykal reported gross revenue of ₹1,498 crore in FY26, up 53.2% from ₹978 crore in FY25, while losses narrowed from 6% to 4% of revenue — a sign of improving unit economics.

Founder and CEO Abhay Deshpande said the bridge round gives the company flexibility to deepen its tech investments, scale DRS, and expand internationally, calling the circular economy “fundamentally a technology problem”.

Established in 2016 by Abhay Deshpande, Recykal operates a digital waste management platform designed to connect brands, producers, recyclers, and waste collectors. The platform assists businesses in complying with Extended Producer Responsibility (EPR) regulations, managing electronic waste and recyclables, tracking waste movement, and accessing circular economy solutions through its technology-driven services.