Mumbai, Feb 25 Recykal, a B2B waste management marketplace run by its Founder and CEO Abhay Deshpande, has reported a decline in revenue and a significant rise in losses in the financial year 2024 (FY24).
The company’s losses increased by 31 per cent to Rs 34 crore, up from Rs 26 crore in FY23.
According to its financials, Recykal’s gross revenue dropped by 4.4 per cent to Rs 712 crore in FY24, compared to Rs 745 crore in the previous fiscal year (FY23).
The firm, which had recorded a fourfold year-on-year (YoY) growth in FY23, struggled to maintain the same momentum in FY24.
The company generates most of its revenue from scrap and waste sales, which contributed 85 per cent of its total earnings.
However, this segment saw a 7.4 per cent decline, dropping to Rs 608 crore in FY24 from Rs 657 crore in FY23.
The remaining revenue came from sustainability services, including EPR certificates. Despite the drop in revenue, the company’s overall expenses continued to rise.
Employee benefits surged by 43.3 per cent to Rs 43 crore, including Rs 3.2 crore in employee stock ownership plan (ESOP) related costs.
Provisions for doubtful debts, legal expenses, rent, communication, logistics, and other overheads pushed total expenditure to Rs 752 crore in FY24.
Scrap and waste procurement remained the biggest cost, accounting for 89.5 per cent of total expenses, though it declined slightly to Rs 673 crore.
Recykal’s Return on Capital Employed (ROCE) stood at -15.66 per cent, while its EBITDA margin was -4.04 per cent.
The company also reported total current assets of Rs 317 crore by the end of FY24, including Rs 70 crore in cash and bank balances.
To date, the firm has raised over $38 million, including a $13 million round led by 360 ONE Asset Management.
Founded in 2016, Recykal provides digital solutions for waste management, helping businesses meet Extended Producer Responsibility (EPR) targets, source recyclables, and track industrial waste.
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