Climate-Tech Startup Secures Series D Funding To Expand Circular Economy Platform
Climate-tech startup Recykal has raised Rs 166 crore (approximately $18 million) in a Series D funding round, pushing its valuation to around $280 million. The round was led by Ajay Parekh, Vice Chairman of Pidilite Industries, and witnessed participation from existing investors including 360 ONE, Strat Venture LLC, and Trinity Combine.
The Hyderabad based company received board approval for the fundraise through the issuance of 35,971 Series D Compulsory Convertible Preference Shares (CCPS) at an issue price of Rs 46,275 per share, according to regulatory filings accessed by FUNDING TIMES.
Funding Completed In Two Tranches
The capital infusion was structured across two separate filings. Recykal secured Rs 128 crore in the first tranche during February, while the remaining amount was approved subsequently.
Ajay Parekh emerged as the largest investor in the round with a commitment of Rs 30 crore. Biological E Ltd followed with Rs 25 crore, while 360 ONE Large Value Fund invested Rs 20 crore.
Other key 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 contributed Rs 10 crore each.
Valuation Touches $280 Million
According to FUNDING TIMES estimates, the latest round values Recykal at approximately Rs 2,587 crore ($280 million) on a post-money basis.
The company plans to utilize the fresh capital for working capital requirements and strategic investments in other businesses aligned with its growth objectives.
Building India’s Circular Economy Infrastructure
Founded in 2016 by Abhay Deshpande, Recykal operates a technology-driven waste management and circular economy platform. The company connects brands, producers, recyclers, waste collectors, and other stakeholders through a digital ecosystem designed to improve waste recovery and sustainability outcomes.
Its platform helps businesses comply with Extended Producer Responsibility (EPR) regulations, manage e-waste and recyclables, track waste movement, and streamline circular economy initiatives.
Strong Revenue Growth Despite Losses
Recykal delivered robust financial growth during FY26. The company’s gross revenue increased 53.2% year-on-year to Rs 1,498 crore from Rs 978 crore in FY25.
However, losses also widened marginally, reaching Rs 60 crore compared to Rs 56 crore in the previous fiscal year as the company continued investing in growth and expansion.
Following the latest allotment, 360 ONE Large Value Fund holds a 10.17% stake in the company, while Strat Ventures LLC owns 5.29%. Founder and CEO Abhay Raosaheb Deshpande remains the largest individual shareholder with a 23.11% stake.
The latest funding highlights continued investor confidence in climate-tech and circular economy businesses as regulatory compliance and sustainability initiatives become increasingly important for enterprises across India.
