Recykal, which is a Hyderabad based B2B platform for waste management and recycling marketplace, has now secured $22 million from Morgan Stanley India.

Some of the returning investors, which include the Circulate Capital, Vellayan Subbiah, and Arun Venkatachalam of the Murugappa Family, also participated in the funding round.

This takes the total equity capital funds secured by the company to $26 million, which even includes a $4 million round in the year 2020.

The company will now be going to use the new funds to strengthen its technology and expand its B2B marketplace apart from building hyperlocal waste processing infrastructure.

Recykal was founded by Abhay Deshpande in the year 2016. The platform started out with a consumer-facing app for recycling domestic waste called Uzed.

The company has seen three times growth consistently over the past few years.

Recykal is also looking to add some new categories to recyclers on the buy-side, which includes the battery, metal and some other components.

The company works with the service providers in other geographies to source recyclable waste, formalizing the industry via GST registered transactions.

Executive Opinion

“Waste management in India and many other parts of the world is already a big problem and it is getting worse. We believe our investment will allow Recykal to play a leadership role in implementing scalable and sustainable solutions to one of society’s biggest challenges”, said Raja Parthasarathy, Managing Director and Co-Head of Morgan Stanley India Infrastructure in the statement.

“Soon we realised that it wasn’t cost-effective. With the implementation of Extended Producer Responsibility (EPR) to electronic waste and plastic waste, we decided to focus on businesses to provide traceable waste management solutions around 2019,” Abhay Deshpande told in a report.