Runaya Considers Fundraising in FY26 with Interest from Private Equity Funds

Runaya, a metal recycling startup fully owned by Vedanta Group promoters, is considering a share sale in the first half of FY26. Naivedya Agarwal, the co-founder and managing director, mentioned that private equity funds have shown interest in acquiring a stake. He did not disclose any valuation details but hinted at a potential capital market transaction next year.

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The company plans to invest up to Rs 500 crore each in FY25 and FY26. This investment will include two new business lines set to be announced as joint ventures soon. Runaya requires up to USD 400 million in funding, with USD 160 million in equity, over the coming years to support its growth plans. Agarwal emphasised that the family is prepared to provide the necessary resources.

Revenue Targets and Business Expansion

Runaya aims to close FY25 with revenue reaching Rs 1,000 crore. This includes Rs 100 crore from fibre-reinforced plastic, Rs 550 crore from minor metal recycling and dross, and Rs 350 crore from a joint venture with Minova. The company reported revenues of Rs 450 crore for FY24 and targets a topline of up to Rs 1,800 crore in FY26.

The company's long-term goal is to achieve USD 1 billion or Rs 8,000 crore by FY30. Currently, Runaya recycles 1 lakh tonnes of industrial waste from aluminium and zinc plants. This figure is expected to increase to 10 lakh tonnes within three years.

Investment Strategy and Financial Outlook

Agarwal stated that Runaya has been profitable since its inception. He stressed the importance of having the right partner over merely seeking cash. "We are not hungry for cash, having the right partner is important," he said. The company remains committed to its growth ambitions while ensuring financial stability.

In summary, Runaya's strategic plans involve significant investments and expansion into new business areas through joint ventures. The company is poised for substantial growth in the coming years, supported by both internal resources and potential external partnerships.