Circulate Capital, an environmental impact investment firm that has backed several Indian recycling and waste management companies including Recykal and Dalmia Polypro, has marked the final close of a new fund at $76 million.
The Circulate Capital Ocean Fund I-B takes the firm’s assets under management to $255 million, the Singapore-based firm said in a statement.
The final close comes as it also raised $7 million in fresh capital from British International Investment (BII), the UK’s development finance institution. BII joins International Finance Corporation, the European Investment Bank and France’s Proparco as the new fund's limited partners. These DFIs have committed a total of $32 million to the fund.
“To close our climate tech fund with the support of prominent partners including global corporations, family offices, foundations, and now four of the biggest DFIs in the world signifies that the sector is ripe for the capital it needs to achieve circularity and mitigate the negative effects of climate change,” said Rob Kaplan, CEO and founder of Circulate Capital.
Circulate Capital said it is looking to invest in companies combating plastic pollution and climate change across several markets in Asia from the new investment vehicle.
The new fund aims to prevent 5 million tonnes of plastic pollution from entering the environment, according to a press release by the UK Prime Minister's Office.
The fund is looking to invest primarily in climate-tech investments in innovations that reduce the need for virgin plastics and limit greenhouse gas emissions across the sustainable fashion, biotech, AI and smart materials sectors.
The investment firm said it will invest in companies transforming recycling and waste management supply chains in South and Southeast Asia, scaling the highest-potential solutions and replicating their success.
In India, Circulate Capital has previously invested in Mumbai-based Lucro Plastecycle Pvt. Ltd, Ahmedabad-based dry waste management company Nepra Resource Management Pvt. Ltd, Hyderabad-based plastic recycling company Srichakra Polyplast (India) Pvt. Ltd, and waste-commerce firm Rapidue Technologies, which operates Recykal. It has also invested in Dalmia Polypro, Ricron Panels and Deluxe Recycling, according to its website.