Hyderabad headquartered Recykal, a cloud-based waste management and recycling enabler has closed a Pre-Series A financing round of US $ 2 million. Triton Investment Advisors (Triton), the family office of Ajay Parekh (Director, Pidilite Industries), and existing investor, Vijay Acharya (former managing director, Bank of Singapore) participated in this round. The funding will enable Recykal to expand their footprint across India.
Recykal’s digital technology platform connects Waste Generators (businesses and consumers) with Waste Aggregators and Recyclers, facilitating transactions and offering visibility, transparency and traceability of recyclable waste. The company has also built a suite of mobile applications that facilitates consumer awareness and take-back programs for FMCG and electronic brands and ensures compliance with the Extended Producer Responsibility (EPR) Guidelines outlined by the government.
“Over the past three years, we have been working closely with stakeholders in the industry to understand their pain points and developed tailored solutions for them,” said Abhishek Deshpande, co-founder, Recykal. “The funds raised will help us strengthen our technology offerings, expand our team and presence in new cities across India. Our association with Triton marks the onset of an exciting journey for us and the industry.”
Dev Raman, Partner at Triton added, “Waste Management and Recycling industry is a massive and untapped space, where the stakeholders are often disjointed and disconnected. We see a multi-billion-dollar industry evolving, with the Solid Waste Management Rules, EPR and other driving factors. Recykal, with its comprehensive technology offerings is leading the way to bridge the technological and operational gaps. It’s a unique investment opportunity that lets us create social, economic and environmental impact at scale. We are glad to be part of their vision.”
Ajay Parekh, Director, Pidilite Industries pointed out that, “Organizations, governments and communities who embrace sustainability view waste management and recovery of materials to be critical to achieve their sustainability goals. Investments in this space can potentially create millions of jobs and accelerate India’s vision for a circular economy.”
Recykal is the brainchild of Abhay Deshpande, a serial entrepreneur who founded Martjack in 2007 (acquired by Capillary Technologies). Explaining the rationale behind Recykal, Deshpande said, “Indian Waste Management market is expected to reach US$14 billion by 2025.It is primarily operated by the informal sector, with the majority of the transactions being offline and untraceable.
Recykal aims to disrupt the industry through ‘digital intervention’ to drive awareness, mobilize actions among the stakeholders and establish a transparent ecosystem. The sector is often run by Public Private Partnership (PPP) models, with the participation of companies limited to their CSR initiatives. However, the landscape is changing, with private investments pouring in to encourage innovative ideas and promote sustainable businesses, on account of government initiatives like Swachh Bharat, Solid Waste Management Rules and EPR.”
Founded in 2016, by Abhishek Deshpande and Anirudha Jalan, Recykal’s technology solutions are deployed across 150 businesses. It is currently operational in Hyderabad, Pune and Bangalore, and channelizes more than 1000 metric tonnes of recyclables per month through its platforms.