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This German online marketplace for global scrap metal trading just raised €1.5M funding

METYCLE funding
Image credits: microgen/DepositPhotos

As metals play a crucial role in the transition towards a green economy, it helps reduce CO2 emissions in its applications. However, the production of primary metals is a CO2-intensive process, accounting for over 3.6 billion tons, which is over 10% of the global annual direct CO2 emissions.

On the other hand, metals have the significant advantage to recycle infinitely without the decline in quality – at a 60-95% lower CO2 footprint. METYCLE aims to make the market more efficient and support the transition towards a carbon-neutral world.

Founded in 2022 by Rafael Suchan and Sebastian Brenne, the Cologne-based B2B online trading platform enabling the digital, fast, and efficient trade of secondary metals, secured €1.5 million in pre-seed funding. The financing round was led by marketplace-focused VCs Market One Capital from Poland and DFF from the US. The round also saw participation from angel investors – Tom Bird, ambassador and veteran of the global recycling industry, and Louis Pfitzner, entrepreneur and marketplace investor, who co-founded Caya.

In a conversation with TFN, METYCLE founders said that they plan to use the funds to increase its offering to ensure product quality and expand its service offerings in financing and hedging for buyers. The company will hire a best-in-class international metal trading team, and software product and engineering teams to provide excellent customer experience. It is in plans to hire around 20 new specialists within the next 12 months

“Our new venture further accelerates international trade of secondary metals by ensuring product quality combined with fast and seamless product ordering and shipment. We bring trust via a digital sales channel into a vastly fragmented global industry,” said Rafael Suchan, Co-founder and Managing Director of METYCLE.

Tom Bird, angel investor and veteran of the global recycling industry said, “METYCLE further simplifies international trade of vital secondary raw materials, ensuring a truly global circular economy. Scrap metals are by far the most recycled materials, helping to reduce the CO2 footprint of the metal industry and easing the need for further primary raw materials. This only works if the recycled metals can be traded globally.”

“We’re excited to partner with Sebastian and Rafael on their mission towards more efficient and sustainable trading of metals for recycling. Given their experience and expertise the Founders are uniquely positioned to make it happen. It’s a huge market and METYCLE fits very well into our B2B marketplaces investment focus,” said Jacek Łubiński, Partner at Market One Capital.

“Sebastian and Rafael know the market for secondary metals like no other. Powered by their deep domain expertise, they have built a marketplace that caters to the needs of buyers and sellers alike – creating transparency and efficiency across the entire value chain. Through its global marketplace and international matchmaking, the lifetime value of scrap metal is greatly extended – a fantastic win-win-win situation,“ said Mart de Haar, Partner at DFF.

Global scrap metal trading platform

METYCLE founders have extensive experience in the metal recycling industry and a proven track record in building and scaling B2B marketplaces. Rafael is an experienced senior executive and former CEO of Chiho Environmental Group and Scholz Recycling, one of the leading metal recycling companies globally. Sebastian is a B2B marketing expert with more than 15 years of experience and former CEO of CheMondis, the leading online B2B platform for industrial chemicals.

The company facilitates easy access to metal scrap and recycled metals for the production supply chain, ensures trust and quality via specialised agents by acting as a distributor on its own account, and helps to match and monetise CO2 savings across the value chain. It has created a platform for international metal scrap and recycled metal trade with the aim to make the market more efficient and support the transition towards a carbon-neutral world.

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