Recykal, a Hyderabad-based business-to-business (B2B) platform for trash management and recycling, has garnered $22 million in funding from Morgan Stanley India. The round included return investors Vellayan Subbiah, Arun Venkatachalam, and Circulate Capital of the Murugappa Family, according to the business.

The business has already raised $26 million in total equity funding, including a $4 million round in 2020.

The funds will be used to improve the company's technology and grow its B2B marketplace, as well as to construct hyperlocal trash processing infrastructure.

Abhay Deshpande, a serial entrepreneur who launched ecommerce platform Malamall in 1998 and ecommerce enablement SaaS platform Martjack in 2007, founded Recykal in 2016. Capillary Technologies eventually purchased Martjack. Anirudha Jalan, Ekta Narain, Abhishek Deshpande, and Vikram Prabhakar are among the company's other co-founders.

Uzed, a consumer-facing software for recycling household garbage, was the platform's first product.

Abhay Deshpande said, “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.”

Over the years, the firm has routinely grown by 3-3.5X. he added, “Waste management is a pandemic and recession-proof business.”

Recykal connects sellers of recyclable garbage, such as hotels, workplaces, campuses, companies, Resident Welfare Associations (RWA), and informal aggregators that gather recyclable rubbish from ragpickers and others, through its marketplace platform. Recykal works with e-waste and plastics recyclers, which can now get the majority of their raw materials from fewer providers rather than a vast network of aggregators and others.

Recykal is also trying to expand its buy-side recyclers, such as metal, battery, and other components.
The firm collaborates with service providers in other countries to obtain recyclable garbage, bringing the sector into compliance with GST-registered transactions.

Morgan Stanley India Infrastructure Managing Director and Co-Head Raja Parthasarathy said, “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.”