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Clean-tech startup ReCircle raises bridge round led by Venture Catalysts and Mumbai Angels



Clean-tech startup ReCircle recently announced that it has secured an undisclosed amount in a bridge funding round led by Venture Catalysts and Mumbai Angels.

The company cannot share any additional information about the fund raise quantum currently.

This funding will enable ReCircle to provide high-quality recycled and traceable plastics to companies using the material for packaging. With this, the company opens up a new revenue channel that will help it target a revenue of Rs 100 crore in the next financial year (2025-26).

This funding will support ReCircle’s mission to transition to a circular system for plastic waste. Rahul Nainani, CEO & Co-Founder, says that by forward integration into the supply chain, they will get control over the entire supply chain, providing traceability. “This helps us pass on benefits to downstream partners and pushes us further towards our vision of ethical circularity. The funds raised will be crucial in our journey towards diversification, expanding our impact and launching our own recycling unit in the coming months.”

Founded in 2016, ReCircle aims to tackle India’s growing waste problem. The firm operates its own advanced material recovery facility in Dahisar, Mumbai, wherein it collects materials such as plastic, paper, cardboard, metal, glass, e-waste and textile waste. ReCircle claims to have diverted over 169,000 MT (equivalent to the weight of 28,166 elephants) of waste from landfills and water bodies across 270 cities and towns in India with the help of 45 processing partners who have a pan-India network of 400 collection partners.

Nainani sees a big market opportunity with the Extended Producer Responsibility (EPR) requirement for mandatory use of recycled content of 10-30% kicking in from April 2025. “Having captive capacity of PET bottles at our own facility in Mumbai and having built a strong pan-India collection network, we see ourselves in the right position to leverage this to forward integrate and tap into the massive market demand.”The company has seen challenges in raising equity capital from VC funds. Nainani states that most funds were either not looking at the sector or did not understand their business model as the waste management industry is fragmented and has multiple nuances. “While we were cash-flow positive and steadily growing, we did need equity capital to enable us to grow our business to the next level. We overcame this by getting on board Flipkart Ventures, Acumen & 3iPartners in 2023,” he says. In 2023, ReCircle raised its pre series-A round from Flipkart Ventures, 3i Partners & Acumen Fund Inc.

Tracxn had valued the startup at $7.79 million on October 23, 2023.



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