Recykal, a Hyderabad-based technology platform for waste management and the circular economy, recently raised USD 23 million in a bridge round through a mix of primary and secondary capital. The round saw participation from existing investors and select new family offices.

The fresh capital will be used to strengthen Recykal’s technology platform, accelerate its Deposit Return System (DRS) deployments, expand behavioural change solutions in waste management, and support international growth. In FY26, the company reported gross revenue of Rs 14.98 billion, up 53.2 per cent from Rs 9.78 billion in FY25, while reducing losses from 6 per cent to 4 per cent.

As part of the transaction, early climate-focused investor Circulate Capital completed a full exit, realising around 5x returns on its original investment. Recykal said the fundraise will help the company deepen its technology investments and scale DRS, where consumers pay a small refundable deposit on packaging that is returned upon recycling.

The company has deployed and piloted DRS solutions across Goa, Himachal Pradesh, Kerala, Tamil Nadu and Bhutan. Its reverse vending machine and digital clearinghouse technology support governments, beverage producers and retailers in implementing producer responsibility and deposit-return mandates.

Recykal is also pursuing international opportunities in Europe and the United Kingdom through organic expansion, partnerships and potential acquisitions. The company is expanding its Open Marketplace to connect aggregators, recyclers and industrial buyers for domestic and global sourcing of recyclable materials and circular commodities.

Founded in 2016, Recykal connects brands, producers, recyclers, aggregators, collectors and consumers through traceability, circular commerce, material recovery and DRS solutions at scale.