As an initiative of preventing marine plastic, Circulate Capital has announced its first investment in Indian and Indonesian recycling companies.
Circulate Capital, an investment management firm, finances innovation, infrastructure, and companies dedicated to preventing plastic waste’s flow into the world’s ocean. The firm is led by Rob Kaplan, one of the founders of Closed Loop Partners, the parent company of Circulate Capital.
In an announcement last year, Circulate Capital disclosed its plan of investing its secured funds. Taking forward the same, the firm has now announced its first investment of $6 million in two recycling companies – one from India and the other from Indonesia.
The company has claimed that the money it is investing has come from Circulate Capital Ocean Fund (CCOF). CCOF is a $106 million fund financed by some of the largest brands globally and plastic manufacturers – PepsiCo, Dow, Procter & Gamble, Danone, Unilever, CHANEL, Chevron Phillips Chemical, and The Coca-Cola Co.
Recycling Companies in which Circulate Capital is investing
- Lucro Plastecycle Private Limited (Lucro)
Lucro is an India-based recycling company, located in Mumbai. The company is an expert in recycling difficult-to-manage flexible plastics.
- PT Tridi Oasis Group (Tridi Oasis)
Tridi Oasis is an Indonesia-based recycling company, located in Jakarta. The company specializes in recycling polyethylene terephthalate (PET) bottles into recycled polyethylene terephthalate (RPET) flakes.
With this investment, the Circulate Capital aspires to help Southeast and South Asian Small and Medium Enterprises (SMEs) to come out safely through the crisis of COVID-19 and combat ocean waste.
Apart from Circular Capital, the American government is also financially supporting Tridi Oasis. In an announcement last year, the US Agency for International Development (USAID) mentioned backing Circulate Capital’s investment with around $35 million by providing 50% loan guarantees, thereby reducing risk for private financiers.
A press release of Circulate Capital also mentioned the 50% loan guarantee that the US International Development Finance Corporation is providing to the recycling company in collaboration with USAID.