Recykal raises $23 million from Biological E, AIG Hospitals promoters & existing investors

Hyderabad: Waste management and circular economy tech platform Recykal has raised $23 million (Rs 218 crore) in a bridge funding round backed by new and existing investors, the company said on Monday.The round included $9 million raised from new investors, including Biological E Ltd and the family offices of its managing director Mahima Datla as well as Dr Nageshwar Reddy and PVS Raju of AIG Hospitals.

Existing backers 360 ONE, Trinity Combinator, Strat Ventures and the family office of Ajay Parekh, vice-chairman of Pidilite Industries, contributed $14 million.As part of the transaction, early climate-focused investor Circulate Capital fully exited its investment, generating about five times its original investment.Recykal said the capital will be used to strengthen its technology platform, accelerate deployments of its deposit return system (DRS), expand behavioural-change solutions in waste management and support international growth.Recykal co-founder Abhay Deshpande said the funding would help Recykal deepen technology investments and scale its DRS deployments. “This bridge round gives us the flexibility to deepen our technology investments and expand into international markets where circularity infrastructure is rapidly becoming a priority.”Recykal’s DRS allows consumers to pay a refundable deposit on packaging, which is returned when the packaging is recycled.

The company provides digital clearinghouse, reverse logistics, consumer engagement and verification infrastructure for such programmes.The company has run deployments and pilots in Goa, Himachal Pradesh, Keralam, Tamil Nadu and Bhutan.

It is also pursuing expansion in Europe and the United Kingdom through organic growth, partnerships and possible acquisitions.The company reported gross revenue of Rs 1,498 crore in FY26, up 53.2% from Rs 978 crore in FY25.

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