PolyCycl’s long bet on plastic recycling enters commercial phase with Rainmatter backing

After nearly a decade of research and engineering, PolyCycl, a Chandigarh-based deep-tech start-up working on chemical recycling solutions for hard-to-recycle plastics, is stepping into its commercial phase, aiming to tackle one of the toughest problems in sustainability: what to do with plastics that cannot be mechanically recycled.

Founded in 2016, the company has developed a fully continuous chemical recycling platform that converts low-grade, end-of-life plastics into liquid hydrocarbon oils. These oils can then be refined and reused as feedstock by petrochemical companies to manufacture new plastics, including food-grade materials. The company recently received an undisclosed Series A investment from Rainmatter, Zerodha’s climate-focused investment arm, to accelerate industrial deployments of its technology.

PolyCycl’s origins lie in founder Amit Tandon’s early interest in clean technology, sparked while he was working in the US semiconductor industry in the early 2000s. At the time, concepts such as the circular economy were not mainstream, but the idea of giving plastic’s carbon content a second life resonated, Tandon said, speaking to Business Today.

Unlike traditional batch-based pyrolysis plants, which are typically small, difficult to scale, and focused on fuel markets, PolyCycl’s approach is engineered for continuous operations and industrial scale. “Large petrochemical and oil and gas companies will not engage with technologies that don’t scale,” Tandon said. The company’s platform is designed to integrate into existing petrochemical value chains, enabling plastic-to-plastic circularity rather than downcycling plastics into fuels that are eventually combusted.

The technology has been developed over more than ten years and was validated through extended continuous operations in 2025 with the launch of PolyCycl’s Generation VI platform. According to the company, much of the heavy engineering and scientific risk is now behind it. “Nearly 90% of the engineering and science is done. What remains is building the business and market,” Tandon noted, describing the current phase as an inflection point. PolyCycl operates on a licensing-led model.

While the chemical recycling sector remains nascent in India, global momentum is building. Similar companies in Europe and the US have attracted strong valuations and public listings. PolyCycl believes regulatory moves mandating recycled content in packaging and petrochemicals will further catalyse adoption.

Rainmatter’s investment will be used to support commercial deployments, expand engineering and execution teams, and deepen partnerships with petrochemical and downstream manufacturing players, positioning PolyCycl for both domestic and international scale.

Abhinav Singh Negi, Business and Investments at Rainmatter by Zerodha, said, “We want to back complex technologies that take time to build but have the potential to reshape entire sectors. PolyCycl fits this philosophy through its deep engineering focus and long-term intent. Platforms like this are essential to building credible circularity at scale. The collaboration brings together PolyCycl’s engineering-first approach with Rainmatter’s focus on intentional capital. What stood out for us was the depth of engineering maturity and the potential of the technology for both domestic and international licensing to meaningfully expand recycling of hard-to-recycle plastics.”