According to the recycling company, the funding will enable Katharos to accelerate the development of projects aimed at increasing recycling capacity and supporting the UK’s transition towards a circular economy.
The investment round was led by angel investor James Vernon, global carbon project developer TASC, and a number of high-net-worth individuals and corporate investors from sectors including private equity, infrastructure and renewables.
Katharos said the breadth of investor participation demonstrates strong confidence in its business model and long-term growth strategy.
The company’s leadership team brings experience from the renewables, waste, recycling and infrastructure sectors.
Francis Mann, Chief Executive and co-Founder of Katharos, said: “Our mission at Katharos is to increase the UK recycling’s capacity and support the UK’s long-term circular economy objectives.
“Closing this seed round, with our new investors standing alongside our team and board, we will now accelerate the development of our project pipeline and market engagement.”
Expanding MRF capacity
Katharos intends to develop solutions across several core waste streams, including commercial and industrial waste, local authority and municipal waste, dry mixed recycling residue, and pre-sorting residual feedstock for energy-from-waste facilities.
According to Katharos, its approach is designed to increase material recovery rates while reducing carbon emissions from the waste management sector.
Kareen Boutonnat, chair of the board, added: “Closing this seed round is more than a financing milestone – it is a clear signal of investor confidence in Katharos’ ability to deliver recycling infrastructure that the UK genuinely needs.
“We are well placed to contribute meaningfully to the country’s circular economy objectives.”
The announcement comes as the UK recycling and waste treatment industry faces significant investment requirements.
The Environmental Services Association (ESA) has estimated that the sector will need to invest £10 billion in recycling infrastructure by 2030 to meet national recycling targets.
Katharos plans to focus on the development of new Material Recovery Facilities (MRFs), positioning the company to help deliver the infrastructure needed to process greater volumes of recyclable materials and improve resource efficiency.