Circulate Capital Invests $150 Million in Indian Recycling Sector
Circulate Capital commits $150 million to India to invest in recycling companies
Image: The Economic Times
Circulate Capital has pledged $150 million (approximately ₹1,425 crore) to invest in Indian recycling companies from its second fund, driven by previous successes. The investment aims to support small and medium enterprises in the recycling sector and explore opportunities in critical materials recycling.
- 01Circulate Capital has committed $150 million from its second fund, part of a larger $300 million fundraising effort.
- 02The fund primarily targets small and medium enterprises with a 10-20 year track record in recycling, generating revenues between $20-30 million.
- 03Portfolio companies include Lucro Plastecycle and Srichakra, which supply recycled materials to major corporations like Hindustan Unilever and Coca-Cola.
- 04The new fund will also explore recycling opportunities in critical materials such as aluminum and copper, driven by global supply chain shifts.
- 05Rob Kaplan emphasizes recycling as a strategy to mitigate risks associated with reliance on Chinese supply chains.
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Circulate Capital, a firm supported by major corporations and development finance institutions, has announced a commitment of $150 million (approximately ₹1,425 crore) to invest in recycling companies in India from its second fund. This investment follows the firm's initial success in the country, as noted by founder Rob Kaplan. The new capital allocation is part of a larger $300 million fundraising initiative. Kaplan highlighted that the fund is focused on small and medium enterprises (SMEs) with a solid track record in recycling, typically generating revenues between $20-30 million. Notable portfolio companies include Lucro Plastecycle, in which Hindustan Unilever acquired a stake, and Srichakra, which supplies recycled bottles to Coca-Cola and Pepsi. In addition to plastics recycling, the fund aims to explore opportunities in critical materials like aluminum and copper, responding to global supply chain challenges and the increasing demand for electronics and batteries. Kaplan views recycling as a strategic hedge against risks associated with dependence on Chinese supply chains.
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The investment is expected to bolster the recycling industry in India, potentially creating jobs and enhancing sustainability efforts.
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