Chemical recycling and sustainability-focused RecommerceX is among the innovative Indian startups that recently raised $3.6 million in seed funding. The funding round was led by some reputed venture capital firms including Accel and Kae Capital. The fresh funding is expected to enable RecommerceX to scale up its operations, advance technology, and employ more people.
Addressing a sustainable future
Founded in early 2024 by Shobhit Goyal, Mohit Gulyani, and Ajay Gupta, RecommerceX aims to boost the liquidity of the recycling market worldwide. The startup aims to reduce the use of raw materials by recycling valuable materials such as metals, plastics, and e-waste, which can contribute to the decarbonization of industrial supply chains.
The global metal recycling market is expected to be worth $386 billion by 2030, however, the market lacks proper structure. This disorganization presents major problems in waste management for manufacturers as a large amount of scrap metal goes to landfills instead of recycling plants. Currently, the market for recycled products is largely fragmented, and RecommerceX seeks to change this by providing customers with high-quality products made from tax-compliant recycled materials.
Fund Details
The $3.6 million raised will be effectively used to build a strong team of researchers, enhance the company's exclusive technology, and fund R&D. They will help facilitate the expansion of RecommerceX operations in domestic and international markets. The company intends to diversify into other regions including the UAE and the USA next year. RecommerceX recycles over 1,000 tons of waste per month and intends to reach 10,000 tons of waste per month soon. This aggressive plan fits perfectly with the company's strategy to become a major player in the global recycling market, which could turn the company into a Rs 300-400 crore business.
Market Challenges
RecommerceX focuses on several critical issues that affect the recycling sector. The startup also guarantees traceability and compliance while providing high-purity recovered materials to manufacturers sourcing raw materials. This is especially so as companies around the world are adopting sustainable and low-carbon supply chain practices.
RecommerceX's Technology
Thermal chemical recycling is used by RecommerceX to extract and recover raw materials from manufacturing waste. RecommerceX collects waste from a number of sectors such as plastics, metals and electronics from manufacturing industries. The waste is then sorted to ensure that the various wastes are not mixed so that they can be processed separately. The separated waste is then processed by RecommerceX through its proprietary chemical processes that produce valuable components. The intended effect of this method is to enable the regeneration of high-quality materials, which can be reused in the manufacturing process.
This makes it possible to track all recovered material and obtain a tax compliance certificate. This is important, especially for organizations that require clear records and compliance with prescribed laws and regulations. The collected material is returned to the manufacturers, thereby closing the loop and at the same time helping to reduce the use of virgin raw materials and decarbonize supply chains. This new solution not only responds to the current problem of unfair competition in the recycled products market, but also works towards sustainable goals in terms of reducing waste generation and promoting the use of recycled materials.
conclusion
The launch of RecommerceX’s funding round is a significant step that puts the company on the map to revolutionize the recycling business. Thus, having Accel and Kae Capital as its investors, the startup is set to expand its scale, improve its technology, and act as a leader in the recycling market. With the world rapidly adopting sustainable practices, RecommerceX solutions are well-placed to support this shift.
