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Circular, which connects suppliers of recycled plastics to buyers, plans to expand internationally and introduce other materials to its offering.
Material sourcing platform Circular secured $5.3 million in a recent funding round — for a total of $10.5 million when combined with its seed round — to expand its database of post-consumer recycled materials and an accompanying platform that streamlines PCR material procurement.
Circular’s online platform is a data-driven tool that helps buyers of recycled plastics find materials “at the right price in a fraction of the time,” according to its website. The company says it vets and connects suppliers with buyers via custom quotes while enabling easier contracting, logistics and emissions measurement. It also uses artificial intelligence to codify records, such as for price, specs, material volume and supplier certifications. Circular, which launched in 2022, reports having more than 9,000 global suppliers.
Circular plans to use the new funding for growth. It intends to enhance its platform’s scale and functionality, add team members, add companies and suppliers, expand internationally and add additional materials — including paper and metals — to the plastic-centric platform. The funding rounds included investments from Maniv, Oxygea and Eclipse.
The company reports that in the third quarter of 2023 it sourced 35,000 tons of post-consumer recycled material with $43 million gross merchandise value. That material was for nine global brands, and Circular said partners saved more than 10% compared with the market price. Plus, Circular said the “vast majority” of PCR prices registered less than virgin material prices, “thus breaking the commonly-held belief that there is always a green premium in PCR.”
While describing Circular’s benefits, founder and CEO Ian Arthurs said in a news release that buyers who transition to recycled materials face challenges with an analog market that is inefficient and not transparent.
“They can’t find the material they need, and if they can find it, it’s too expensive — and if they can afford it, there are often quality or consistency issues,” he said. “Existing relationship-driven systems fail to provide the information necessary for buyers to make fast informed decisions, and on the flip side, suppliers have a hard time being discovered by and getting access to serious buyers. Circular unblocks these common issues using data and technology to help buyers and sellers navigate the global market efficiently.” |
