Business

Brazilian startup Eureciclo secures BRL 100 million to boost its recycling credit platform

The funding round was led by Ória Capital; Eureciclo plans to invest in setting up more recycling cooperatives and improve its blockchain technology

Brazilian startup Eureciclo secures BRL 100 million to boost its recycling credit platform
Eureciclo's CEO and founder Thiago Carvalho Pinto. Photo: Courtesy
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Eureciclo, a Brazilian startup of reverse logistics certification, announced this Friday (10) it secured a BRL 100 million Series B round led by Ória Capital and followed by Rise Ventures, Endeavor Scale-Up and Redpoint eventures.

The funds will be invested in expanding the network of operators in the recycling chain, promoting the growth of the country’s recycling chain capacity through the structuring of cooperatives and mechanization of sorting centers, with greater efforts in the Brazilian states that have the most precarious infrastructure.

“This funding is not only for Eureciclo, but for all those who work to transform society and the environment by supporting recycling. For every one real invested, the return is financial for shareholders, operators and customers; social for the collectors; and environmental for society and regulators,” said Thiago Carvalho Pinto, founder and CEO at Eureciclo.

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Founded in 2017, Eureciclo operates on two interconnected fronts: the startup has developed a platform that tracks the post-consumer packaging recycling chain and certifies that the same volume of packaging that a company puts on the market goes to recycling.

Companies that contract with Eureciclo and opt for nationwide compensation receive the Eureciclo seal to print on their packaging and communicate to consumers their commitment to recycling. In addition, the startup is certified as a B Company, a concept that indicates a business model focused on social and environmental development.

READ ALSO: With the “Kinder Egg” strategy, startups attack food waste in Latin America

The startup also works together with partner operators (landfills, private recycling companies, and waste collectors’ cooperatives) through a model of recycling credits in which Eureciclo makes the registration of recycling invoices and turns them into bonds that can be sold to manufacturing companies that put packaging on the market and want to comply with the National Solid Waste Policy.

With this, the startup promotes the formalization of the market and the development of the sector, contributing to the generation of extra income for operators.

“We saw in Eureciclo an opportunity to connect all participants in the recycling chain and enable the transformation of this market with technology, raising recycling rates and generating a positive impact for society,” said Barbara Raymundo, partner at Oria Capital.

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