Circular economy and recycling company Karo Sambhav has raised ₹56 crore in a pre-Series A funding round from Rainmatter by Zerodha, as the company looks to expand its recycling infrastructure and strengthen recovery of critical raw materials from e-waste and other end-of-life products.

The Gurugram-based company said the capital will be used to scale facilities focused on extracting critical, precious and high-value materials from discarded electronics, batteries and allied waste streams. The planned infrastructure has also received eligibility status under the Incentive Scheme for Promotion of Critical Mineral Recycling under the National Critical Minerals Mission (NCMM) of the Ministry of Mines.

Founded in 2017, Karo Sambhav has operated as a bootstrapped company for nearly nine years. It currently runs two recycling facilities, has established collection channels across more than 50 cities, and has channelised over 150,000 metric tonnes of waste for responsible recycling.

The investment comes at a time when access to critical minerals has emerged as a strategic priority for India as it seeks to build domestic manufacturing capabilities across sectors including electronics, clean energy, electric mobility, defence and digital infrastructure.

India generates an estimated 4.1 million metric tonnes of e-waste annually, making it the world’s third-largest producer of electronic waste. Globally, e-waste generation is expected to reach 82 million metric tonnes by 2030, highlighting both the environmental challenge and the economic opportunity associated with recovering valuable materials from discarded products.

“Rainmatter backs organisations building long-term solutions for climate resilience, sustainability and resource efficiency. Karo Sambhav has demonstrated patient execution and systems-level impact in a difficult sector,” said Viraj Joshi, Vice-President at Zerodha and Rainmatter.

The company said its immediate focus will be on e-waste, which contains significant quantities of valuable metals and components such as gold, silver, copper, tantalum and rare earth elements used in electronics and advanced manufacturing.

“India’s manufacturing future will require reliable access to critical, precious and high-value materials. Many of these materials are already present in products that have reached the end of life,” said Pranshu Singhal, founder and chief executive of Karo Sambhav.

The funding marks one of the larger recent investments in India’s recycling ecosystem, underscoring growing investor interest in circular economy businesses that can help secure domestic supplies of critical materials while addressing the country’s mounting waste challenge.

Published on June 18, 2026