Pittsburgh-based RoadRunner Recycling, which bills itself as a technology platform focused on commercial recycling, says it has raised $28.6 million through a Series C financing round. The funds will be used to “double the size of the company’s current team, invest in its world-class artificial intelligence/machine learning (AI and ML) technology, and continue its United States expansion in current markets and launch in up to 10 new markets, including Austin, Phoenix and San Diego,” says the company.
RoadRunner, which was founded in 2014, says it has identified “a massive void between market demands and existing waste industry service offerings.” The technology it developed uses what it calls proprietary data, marketplace dynamics, and AI/ML “to drive customer cost savings, increase national recycling rates and improve service standards.”
“The future of waste and recycling will be defined by technology and innovation, not by continuing to enable a legacy system,” says Graham Rihn, RoadRunner’s founder and CEO. “RoadRunner proudly offers a better way for businesses to approach recycling and waste management, and given the challenges traditional haulers are increasingly facing, it’s a good place to be.”
Continues Rihn, “We want to provide businesses everywhere with a more effective and cost-efficient option for recycling. We’re a trusted partner to our clients as evidenced by our strong retention rates, and our goal is to help them achieve enduring success in sustainable waste stream management. This new capital will allow us to accelerate the growth of the company and empower businesses to be the catalyst for driving better sustainability in our cities and ultimately the world.”
Remarks Mathias Schilling, managing partner at e.ventures, one of the recent financing providers, “RoadRunner has a clear vision for what the future of recycling will look like and has built an impressive offering driven by technology and deep recycling industry expertise. We’re confident that the next chapter will further establish RoadRunner as the innovative leader in the recycling and waste management space, and we look forward to working with RoadRunner and supporting its continued growth in a $70 billion market.”
Since its launch, RoadRunner says it has worked with more than 5,000 customers, “facilitating the completion of 40,000 recycling routes, saving $20 million for [our] customers, and diverting more than 100,000 tons of recyclables from landfills.”
On average, says the firm, a single customer location working with RoadRunner can increase its recycling rates by 10 times and recycle some 8.6 tons of materials annually that were previously sent to landfills. RoadRunner currently operates in 10 markets, including Baltimore, Chicago, Cleveland, Dallas, Detroit, Houston, Philadelphia, Pittsburgh, San Antonio and Washington D.C.
The $28.6 million round was co-led by e.ventures and Greycroft, with additional participation from Franklin Templeton and existing investors Adams Capital Management and FJ Labs. In addition to funding, King Goh, a principal at e.ventures Growth, will join RoadRunner’s board of directors.
PJT Partners LP served as financial advisor and placement agent to RoadRunner Recycling in connection with the Series C capital round.
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