Clean-tech startup ReCircle has secured an undisclosed amount of funding in a bridge round led by Venture Catalysts and Mumbai Angels. The funding will help ReCircle provide high-quality recycled and traceable plastics for packaging, opening a new revenue channel aimed at reaching a target of Rs 100 crore in FY 2025-26.
ReCircle is focused on advancing its mission to create a circular system for plastic waste. CEO and Co-Founder, Rahul Nainani, emphasized that forward integration into the supply chain will allow the company to maintain full control, offering traceability and passing benefits to downstream partners. The funds will support expansion efforts, including the launch of ReCircle’s own recycling unit in the coming months.
Founded in 2016, ReCircle tackles India’s waste management challenges through its material recovery facility in Mumbai, handling various types of waste, including plastic, paper, metal, and e-waste. To date, the company claims to have diverted over 169,000 metric tons of waste from landfills and water bodies across 270 cities and towns in India, supported by a network of 45 processing and 400 collection partners.
The upcoming Extended Producer Responsibility (EPR) regulation, which mandates 10-30% recycled content in packaging by April 2025, presents a significant market opportunity for ReCircle. With its own PET bottle processing capacity and a strong pan-India collection network, the company is positioned to capitalize on the growing demand for sustainable packaging solutions.
Despite challenges in raising equity capital from venture funds, ReCircle successfully onboarded investors like Flipkart Ventures, Acumen, and 3iPartners in 2023. Tracxn recently valued the startup at $7.79 million as of October 2023.