METYCLE Raises $15 Million to Modernize Metal Recycling
Startup METYCLE announced that it has raised €14.4 million (USD$14.8 million) in a Series A funding round to expand its platform for the sale and purchase of recycled and scrap metal, which aims to bring more efficiency to the global market, making it easier to recycle more metal and to reduce carbon emissions.
According to the company, using recycled metals offers a cost-effective way to decarbonize metal production, reducing emissions by as much as 95% compared to primary production, and costing 10% less. The secondary metals market, however, lacks efficiency, with sales often made based on personal inspection at recycling centers, or based on photos. While many sellers apply ISRI (Institute of Scrap Recycling Industries) standards to classify the rough composition of material, metals can vary significantly in product mix, purity, moisture levels and impurities.
Cologne-based METYCLE, founded by Rafael Suchan and Sebastian Brenner in 2022, seeks to make this process easier and more efficient through its online platform that connects sellers of scrap metal with recyclers around the world.
The company is also developing AI-powered smart sorting and check hubs to evaluate metals for their composition and quality before smelting. Once evaluated, the product will be issued a digital product pass, allowing tracking of the material flow and processing in real-time and to track the CO2 savings created from source to smelter.
Rafael Suchan, co-founder of METYCLE, said:
“Metal recycling is crucial for the transition to a carbon-neutral world. Recycling does not only ensure circularity of metals, but also helps to reduce carbon dioxide emissions by up to 95% compared to primary metal production. Today, already more than one third of global metal production is based on recycled metals and METYCLE makes the global metal recycling industry more efficient and transparent with the help of state-of-the-art technology.”
The round was led by sustainability-focused venture capital investor 2150. Existing investors, including DFF Ventures, Market One Capital, Partech, and Project A, also participated in the round.
In a post announcing its investment, 2150 said:
“By improving the efficiency of the scrap metal trade and promoting the use of recycled materials, METYCLE is directly addressing the environmental footprint of the metals industry. Their efforts will help reduce GHG emissions, conserve resources, and move us closer to a truly circular economy.”