Recyda nets €6.3M Series A funding for digital packaging management platform
Recyda has secured €6.3 million (US$6.8 million) in funding from Cusp Capital, a venture capital firm focused on early-stage investments in European tech companies. The platform assists multinational companies with digitally managing their packaging portfolios and complying with international sustainability requirements.
Recyda plans to use the new funds to expand into international markets, acquire new customers and accelerate product development. The company is collaborating with notable brands in the FMCG sector, such as Beiersdorf, Kao and Trolli, among others.
“This funding round empowers us to further build on our current growth,” says Recyda CEO, Christian Knobloch. “Cusp Capital’s investment strategy of funding a new generation of tools at the intersection of digitization and sustainability perfectly aligns with our mission.”
“With the team’s impressive track record, they are a strong partner on our side and we are excited to be working together to accelerate our expansion internationally, both in terms of customers as well as the regional coverage in our software.”
Dr. Maximilian Rowoldt, investor and general partner at Cusp Capital, adds: “We strongly believe that packaging will move from a ‘use and dispose’ regime to circularity. Recyda has built the data foundation to manage sustainable packaging portfolios across functions (like Sustainability & Finance) and the entire packaging value chain.
“Given Recyda’s deep solution that is already trusted by leading brands, Recyda has the potential to become the leading operating system for sustainable packaging globally.”
Streamlining compliance
Pressured by new legislative mandates, the packaging industry faces significant challenges as they are bound to comply with ambitious targets concerning all packaging entering the EU market.
Recyda’s SaaS solution is designed to digitally manage packaging data along the packaging value chain and conduct thorough evaluations. The solution supports companies in packaging R&D, master data management and financial reporting and forecasting.
At the core of the platform are digital assessments of packaging recyclability, Extended Producer Responsibility fees and other sustainability aspects, adhering to international standards.
“Recyda offers a Software as a Service (SaaS) platform for sustainable packaging management, which helps internationally positioned packaging manufacturers, brand owners, and retailers manage packaging data effectively and adhere to the complex international landscape of sustainability requirements,” details the company.
In the case of Kao, one of Japan’s leading consumer goods manufacturers with a portfolio of brands including Goldwell, Guhl and John Frieda, has been working with Recyda from early on. Recyda’s software supports the company in assessing the recyclability of packaging and optimizing it internationally for all packaging types and brands.
“Recyda’s solution offers key insights early in the packaging development process, helping us identify the most recyclable options. Recyda’s solution is a great contribution to the industry’s joint efforts to reduce our environmental footprint,” says Daniel Nebe, senior manager package development, Consumer Care Business, AEMEA.
The Series A round was led by Cusp Capital, a leading early-stage technology investor from Essen, Germany. Existing investors also participated, building on their previous investment in 2023, which included contributions from a consortium featuring Speedinvest, Futury Capital, the Auxxo Female Catalyst Fund and notable business angels such as Dr. Stephan Rohr, Benedikt Franke and Martin Weber.
Data quality is crucial to ensure regulatory compliance in the packaging industry, according to a recent report by consultancy firm Aura. Its latest global survey underscores the complexity for businesses to transition to sustainable packaging and highlights the need for improved data management systems and regulatory clarity.
