Circulate Capital, the Singapore-based investment management firm that finances innovations, companies, and infrastructure to prevent ocean plastic and climate change by advancing the circular economy, today announced that the Circulate Capital Ocean Fund (CCOF I) is investing in Deluxe Recycling Private Limited (Deluxe). Deluxe is a leading Indian plastic recycling company that recycles challenging multilayer plastics (MLP), like sachets and Used-Beverage-Cartons (UBC) into new, valuable products, such as pallets and rickshaw seats. By creating a market for MLP waste, the company plans on diverting 34,000 tons of waste per annum from incineration or landfills by 2025, helping pave the way to a circular economy in India.
Investment from the Circulate Capital Ocean Fund will allow Deluxe to expand to three new facilities across western and southern India, increasing its capacity three-fold. The Circulate Capital Ocean Fund is the world’s first investment fund focused on ocean plastics in South and Southeast Asia, created in partnership with leading global corporations, PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever, The Coca-Cola Company, Chevron Phillips Chemical Company LLC and Mondēlez International. As Deluxe expands, its infrastructure can be leveraged to build a circular multilayer plastics market and accelerate the development of the sector as new technology is deployed.
Rob Kaplan, Founder and CEO of Circulate Capital, said, “Difficult-to-recycle plastics like sachets, food packing and plastic wrap have remained a global challenge in the waste management and recycling sector. Deluxe’s game-changing technology and entrepreneurial know-how has enabled the company to transform these multilayer plastics into valuable products at a scale not seen before in India. Deluxe currently supplies 90% of the recycled seat board market, which means nearly every rickshaw driver sits on a Deluxe-recycled seat.
Jignesh Shah, Co-founder of Deluxe said: “Our ultimate mission is to create value from waste, diverting it from incineration and landfill. We are proud to partner with Circulate Capital to scale our operations and our impact. At Deluxe, we see the potential to transform India’s MLP waste into a valuable mainstream raw material, incentivizing its collection and replacing the need to use virgin plastics.”