METYCLE is revolutionizing the global secondary metals trade through its unique combination of AI-powered sorting and digital marketplace infrastructure. The Cologne-based startup transforms urban “mines” into high-quality raw material sources, addressing one of the most urgent challenges of the circular economy. The €14.1M Series A funding round, led by 2150 (Article 9 Fund), marks a turning point for the fragmented metal recycling industry, signaling a broader shift toward sustainable resource management and digitalization in the sector. For those interested in scaling strategies, you can also find a comprehensive overview of the key success factors for start-up scaling in 2025 on our platform.
Investment Highlights:
- Addressable market: $600 billion globally, projected to grow to $99 billion by 2029, driven by green manufacturing and sustainability initiatives (GlobeNewswire).
- Quantifiable CO₂ reduction: up to 95% compared to primary metal production, supporting global decarbonization targets (HIR Ltd).
- Strong founding team with 20+ years of combined industry experience.
- Proprietary AI technology with a hardware moat and SaaS scalability.
1. Technology & Differentiation
METYCLE’s core advantage lies in its triple-play approach, integrating three critical components that have traditionally operated in silos:
- AI-powered Smart Sorting Hubs: Proprietary computer vision solutions automate and optimize the sorting process, replacing manual inspection and increasing throughput and accuracy. According to Heathrow Industrial Recycling Ltd, such AI-driven systems are setting new benchmarks in scrap metal recycling efficiency and traceability. Our latest blog post explores how Green Micro SaaS, environmental APIs, and AI can be leveraged for real impact.
- Digital Product Passports (TrustTrack System): METYCLE’s digital chain ensures complete traceability along the value chain, enabling robust Life Cycle Assessment (LCA) and transparent impact reporting. This aligns with international best practices, as highlighted in the IPCC AR6 report, which underscores the importance of digital traceability for sustainable product development.
- Managed Marketplace: By directly connecting collectors and international recyclers, METYCLE streamlines transactions and reduces inefficiencies. For deeper insights into successful marketplace models for startups, check out the OECD’s resources on startup innovation.
This integrated approach creates a strong technology moat. Hardware expertise combined with a SaaS/platform component offers defensibility against both traditional and digital-only competitors. For CAPEX-intensive business models, learn more about the 30% super depreciation incentive, which can significantly reduce effective investment costs for smart sorting hubs.
Moreover, METYCLE’s digital chain enables robust LCA methodology for the first time—a decisive advantage for ESG and Article 9 investors. Learn how to achieve CSRD-compliant sustainability reporting in our overview.
Technology Moat
Hardware Advantage: Decentralized, scalable smart sorting infrastructure creates physical barriers for competitors. The synergy between hardware and SaaS/platform components further strengthens defensibility.
Data Moat: The comprehensive digital chain enables auditable LCA and impact measurement—a crucial edge for ESG and Article 9 investors seeking transparency and accountability.
2. Market Potential & Go-to-Market
Market Size & Growth
- Global market: $600 billion for recycled metals, with projections reaching $99 billion by 2029 (CAGR: ~6%) (GlobeNewswire).
- Supply gap: A projected 15 million tons by 2030 creates structural market opportunities as demand for recycled metals outpaces supply (Coherent Market Insights).
- Scrap metal recycling: Market expected to grow from $63.66 billion in 2025 to $93.90 billion by 2032 at a CAGR of 5.7% (Coherent Market Insights).
Regulatory Tailwinds
EU as a pioneer:
These regulatory frameworks are fueling demand for traceable, certified recycling materials. METYCLE’s platform provides the data foundation for ESRS reporting and Scope 3 emissions reduction, positioning it as a key enabler for companies navigating tightening compliance requirements.
