Recykal, a Hyderabad-based recycling and circular economy startup, has successfully raised $23 million in a bridge funding round. The fresh funding will help the company expand its operations in India and overseas while strengthening its technology platform.
The latest round includes a mix of primary and secondary investments from existing backers as well as new family offices. With this investment, Recykal’s valuation has increased significantly, showing strong investor confidence in the company’s business model and future growth plans.
Funding Round Boosts Recykal’s Valuation
As part of the bridge funding round, Recykal raised around Rs 166 crore through its Series D funding. The company issued 35,971 Series D Compulsory Convertible Preference Shares (CCPS) at an issue price of Rs 46,275 per share.
The funding was completed in two stages. The first tranche of about Rs 128 crore was received in February 2026, while the remaining amount was approved and received later. Following the latest share allotment, Recykal’s post-money valuation has reached approximately Rs 2,587 crore, or about $280 million.
The round also marked the exit of early investor Circulate Capital. The climate-focused investor exited the company with a return of nearly five times its original investment, making it a successful investment outcome.
Several well-known investors participated in the round. Ajay Parekh, Vice Chairman of Pidilite Industries, led the investment with Rs 30 crore. Biological E Ltd invested Rs 25 crore, while 360 ONE Large Value Fund contributed Rs 20 crore.
Other investors included Trinity Combine Private Limited and Strat Venture LLC, which invested Rs 15 crore each. Clini Pharma LLP, P. Arun Varma and PVS Raju invested Rs 10 crore each. A group of additional investors collectively invested over Rs 31 crore in the company.
Revenue Growth Remains Strong in FY26
After the latest funding round, founder and CEO Abhay Raosaheb Deshpande remains the largest individual shareholder in the company with a 23.11% stake.
Among investors, 360 ONE Large Value Fund holds 10.17% of the company, while Strat Ventures LLC owns 5.29%. Ajay Parekh now holds a 2.64% stake. Co-founders Abhishek Arvind Deshpande, Anirudha Jalan, Ekta Narain and Vikram Loka Prabakar also continue to hold shares in the business.
Along with the funding announcement, Recykal reported strong financial growth for FY26. The company’s gross revenue increased by 53.2% year-on-year to Rs 1,498 crore, compared to Rs 978 crore in FY25.
The company’s losses increased slightly to Rs 60 crore from Rs 56 crore in the previous year. However, its loss margin improved from 6% to 4%, showing that the business is becoming more efficient even while investing heavily in expansion and growth.
The improvement in profitability metrics highlights Recykal’s efforts to balance rapid growth with better financial performance.
Company Plans Expansion in India and Global Markets
Recykal plans to use the newly raised funds to expand its Deposit Return System (DRS), which encourages consumers to return used packaging for recycling by offering refundable deposits.
The company will increase the deployment of reverse vending machines and strengthen its digital infrastructure across several regions. States such as Goa, Himachal Pradesh, Kerala and Tamil Nadu are expected to be key focus markets. Recykal also plans to expand the system into Bhutan.
The startup is also looking beyond India. It plans to expand into Europe and the United Kingdom through partnerships, organic growth opportunities and possible acquisitions.
Apart from geographic expansion, the company will invest in technology development, working capital requirements and the growth of its Open Marketplace platform for recyclable materials.
With fresh funding, strong revenue growth and an improving financial profile, Recykal is entering its next phase of growth. The latest $23 million bridge funding round strengthens the company’s position in India’s recycling sector while supporting its ambition to build a larger global circular economy platform.