Hyderabad-Based B2B Waste Management Platform, Recykal Raises $22 Million From Morgan Stanley1 year ago Rituka M
B2B Waste Management and Recycling cloud-based Platform, Recykal has raised $22-million. These funds will go towards expanding its B2B marketplace and strengthening its technology.
The Indian waste-management industry comprises the collection, transportation, and disposal of garbage, sewage, and other waste products. This industry includes several middlemen and is informal and cash-driven. Today, the consumption of products and the generation of waste is a never-ending process. Over the years, India has seen massive disruptions in the pre-consumption and consumption market. Yet, the post-consumption market, (waste management) has seen little-to-no traction at all.
Enter Recykal, a Hyderabad-based B2B platform for waste management and recycling. Recykal’s digital technology platform connects Waste Generators with Waste Aggregators and Recyclers. Today, this Hyd-based startup announced the raising of $22-million from Morgan Stanley India. Other existing investors who participated in this round were Circulate Capital, Vellayan Subbiah, and Arun Venkatachalam of the Murugappa family. Recykal intends to use the funds towards strengthening its technology. Apart from that, the company intends to set up hyper-local waste processing infrastructures.
This Hyderabad-based company has raised a total of $26-million in equity capital, including a $4m round in 2020.
Founded in 2016 by Abhay Deshpande, Recykal is an end-to-end digital solutions provider. Headquartered in Hyderabad, other co-founders include Abhishek Deshpande, Anirudha Jalan, Ekta Narain, and Vikram Prabakar. Their initial consumer app, ‘Uzed’ for recycling waste wasn’t as cost-effective. Recykal’s Extended Producer Responsibility (EPR) guidelines implemented towards electronic & plastic waste provide waste management solutions to businesses. Since its inception, Recykal has channelized over 200,000 MT of dry waste into the circular economy.
In a statement, the company said that they’ve been able to achieve this by connecting over 100 brands, 1000 corporates, 150 recyclers, and 80 Governmental agencies across India. With the expansion, currently, Recykal is operational in Mumbai, Delhi, Kolkata, Hyderabad, Pune & Bangalore.
GROWTH AND FUTURE OUTLOOK:
With revenue of Rs. 1.8 cr in FY19, the CEO opined that the company has been growing at a pace of 3x, and is likely to reach Rs. 220 cr in FY22. With the latest investment, Morgan Stanley will get board representation in the company.
Recykal intends to add new categories of recyclers such as metal and batteries. Additionally, they intend to expand to service providers in other geographies. This will allow sourcing of reliable waste and formalize the industry. Pitching itself as a commercial venture, Recykal is building a waste management ecosystem and infrastructure to sustain it successfully.
On the investment, Raja Parthasarathy, MD of Morgan Stanley said that waste management in India and across the world is a growing problem. And their investment will allow Recykal to play a leadership role in implementing scalable and sustainable solutions.