The company announced the successful closing of a seed funding round
METYCLE, a German scrap trading platform, has raised $5 million to expand its operations to meet the growing demand for recycled materials. This is reported by Reuters.
The amount was raised from investors, including venture capital firm Project A and private equity fund Partech.
«The trade in secondary metals is global, highly fragmented, opaque and characterized by low levels of trust,» says Rafael Zuhan, the company’s co-founder.
The point is that the secondary metals sector mainly consists of small and medium-sized enterprises that sort scrap locally. Earlier this year, EU countries raised their scrap recycling targets. Secondary metals are important because of the red tape that limits mining in the EU.
According to EU-Startups, METYCLE, founded in 2022, is a digital platform for international trade in recyclables. It allows buyers and sellers to trade any metal, from steel to non-ferrous metals.
«Metal can be processed forever without loss of quality. It is a key raw material for multiple use in the production of infrastructure and investment goods, as well as a key material for the transition to green energy and the creation of a world with zero carbon emissions,» says Zukhan.
As GMK Center reported earlier, decarbonization, energy costs and rising interest rates will continue to influence to the global scrap market in 2024. This forecast was given by the Italian association Assofermet.