Rainmatter by Zerodha Backs Circular Economy Startup to Expand E-Waste Recycling Infrastructure

Gurugram-based circular economy startup Karo Sambhav has secured ₹56 crore in a pre-Series A funding round from Rainmatter by Zerodha. The investment marks a significant milestone for the company as it accelerates its mission to build advanced recycling infrastructure for recovering critical raw materials from end-of-life products.

The funding reflects the growing importance of sustainable recycling and resource recovery as India strengthens its manufacturing capabilities and transitions toward a circular economy.

Fresh Capital to Expand Critical Material Recovery

Karo Sambhav will use the newly raised funds to expand its recycling infrastructure focused on recovering critical minerals, precious metals, and high-value materials from electronic waste and other allied waste streams.

The company’s immediate priority is scaling the recovery of valuable materials from e-waste, including electronic devices that contain metals essential for industries such as clean energy, electronics, electric vehicles, healthcare, and advanced manufacturing.

The investment will also support the expansion of recycling capacity for additional waste categories, helping improve resource efficiency while reducing environmental impact.

Building a Transparent Circular Economy Platform

Founded in 2017 by Pranshu Singhal, Karo Sambhav has spent nearly a decade building a technology-driven recycling ecosystem. Unlike traditional waste management companies, the startup focuses on creating transparent and traceable systems for collecting, processing, and responsibly recycling end-of-life materials.

Today, the company operates two recycling facilities, has established collection networks across more than 50 Indian cities, and has successfully directed over 150,000 metric tonnes of waste toward responsible recycling.

Its digital platform enables end-to-end traceability, ensuring accountability throughout the recycling process while supporting regulatory compliance and sustainable resource management.

Supporting India’s Manufacturing and Resource Security

As India continues to expand its electronics, renewable energy, electric mobility, and semiconductor industries, demand for critical raw materials is increasing rapidly.

Materials such as lithium, cobalt, nickel, graphite, copper, gold, silver, platinum, rare earth elements, tantalum, indium, and tin are essential components in batteries, printed circuit boards, electric motors, displays, and precision equipment. Recovering these valuable materials from discarded products reduces dependence on imports while strengthening domestic supply chains.

Karo Sambhav’s upcoming infrastructure has also received Eligibility Status under the Incentive Scheme for Promotion of Critical Mineral Recycling, a key initiative under India’s National Critical Minerals Mission.

Rainmatter Strengthens India’s Sustainability Vision

Commenting on the investment, Viraj Joshi, Vice President at Rainmatter by Zerodha, highlighted Karo Sambhav’s long-term execution and its contribution toward climate resilience, sustainability, and resource efficiency.

Founder and CEO Pranshu Singhal stated that India’s manufacturing future depends on reliable access to critical raw materials. He emphasized that recovering these resources from end-of-life products presents a major opportunity to build sustainable supply chains while reducing waste.

With fresh funding, strong government support, and a rapidly expanding circular economy, Karo Sambhav is well-positioned to become a key player in India’s critical mineral recycling ecosystem.

Featured on The Startup Caffe

Stay updated with the latest startup funding news, business insights, and exclusive founder stories. Follow The Startup Caffe for daily coverage of India’s fast-growing startup ecosystem.