Previous discussions around sustainability were mostly centred around the ability to boost recycling efforts, reducing plastic usage, and promoting greener habits. Today however, the current focus is towards something more practical and sustainable. The goal is now on turning waste, surplus materials and used products into economic assets.
As the cost of living rises, consumers are becoming far more price-conscious. Additionally, businesses must now improve on their sustainability performance to satisfy regulators, investors, and clients. At the same time, cities continue to grapple with the ever-growing volumes of waste and strained waste management systems across the Southeast Asian region..
Here’s why circular electronics could become Southeast Asia’s most overlooked climate tech opportunity
This has resulted in a generation of circular economy startups that have emerged across Southeast Asia that are not just about raising environmental awareness. Instead they are creating markets for reselling clothes, fashion recommerce, waste collection networks, recycling infrastructure, and materials recovery systems. These solutions are not only sustainable but they are also able to generate measurable commercial value.
Here are the five startups redefining how to approach waste and resource efficiency in 2026 across Southeast Asia.
Carousell
Carousell, founded in Singapore, is one of Southeast Asia’s best-known examples of circular commerce that operate on a large scale. While the platform is mostly seen as a consumer marketplace, it simultaneously plays a crucial role in prolonging product life and keeping these products from being tossed out to landfills once used. Users can buy and sell second-preowned goods across various categories ranging from electronics, clothes, furniture, cars, to household items on Carousell.
This strategy is in direct alignment with recommerce principles, which prioritise keeping products in use for extended periods instead of replacing them. By enabling these pre-owned transactions, Carousell effectively helps lower overall consumption. Simultaneously, the platform generates value for the buyers and sellers within its ecosystem who participate in the circular economy.
According to the company’s Circular Economy Impact Report, second-hand sales in Greater Southeast Asia have had positive environmental benefits. The report highlighted that resale platforms have not only cut down waste but have also remained commercially viable. Carousell’s success goes to show that recommerce has evolved from a small niche trend into a mainstream consumer habit.
REFASH
Operating through an omnichannel framework that merges physical storefronts with digital marketplaces, Singapore’s REFASH focuses on the fashion sector, one of the most environmentally taxing industries globally. The company specialises in the resale of pre-owned clothing, providing a platform for individuals to sell their surplus garments while offering buyers branded fashion at reduced prices.
Despite remaining wearable, tonnes of clothing continue to end up in landfills. This is a significant global challenge that REFASH actively addresses for the benefit of both brands and consumers. The startup’s move into Hong Kong underscores a rising regional demand for sustainable, affordable alternatives and proves that circular fashion models can scale across Southeast Asia’s diverse and fragmented markets without compromising on consumer convenience.
Rekosistem
Rekosistem manages a waste management platform powered by technology that bridges the gap between households, corporations, and waste processing facilities. By utilising a detailed ecosystem, the company ensures that recyclable items are gathered, categorised, and reintegrated into the supply chain rather than being discarded in landfills. This strategy emphasises a crucial lesson for startups in the sector. Successful recycling hinges on the implementation of robust collection frameworks as well as efficient management of material movement.
Rekosistem managed to secure US$7 million in Series A funding to accelerate its AI-driven waste recovery operations in 2025. The funding highlights growing investor confidence in waste infrastructure businesses that can combine environmental impact with scalable economic models throughout the region.
Octopus
Another startup is Octopus, which primarily focuses on building collection infrastructure for recyclable materials. The company tackles a prominent issue in recycling systems of emerging markets which is collection density. Even if recyclables have significant value, scattered collection networks make recovery of these items a difficult operation. Octopus utilises its technology and decentralised collecting methods to boost waste aggregation and logistical efficiency. Octopus has helped create far more reliable supply chains for recyclable materials by connecting communities, waste collectors, and recycling partners.
For sustainability startups operating in Asia, operational success is frequently evaluated based on logistical execution rather than their environmental messaging. The commercial viability and scalability of recycling companies are ultimately determined by factors such as processing efficiency, transport expenditures, and collection density. As urban populations continue to grow across Southeast Asia, solutions that improve waste collection infrastructures are likely to become increasingly important.
Green Li-ion
With the shift to electric vehicles, energy storage, and portable devices, there’s an unprecedented need for battery materials. Used batteries however pose big environmental risks while still being a valuable source of recoverable resources. Green Li-ion developed technology designed to recover critical battery materials from old lithium-ion batteries. Once recovered, these materials can go right back into battery manufacturing supply chains.
Lithium, nickel, and cobalt hold significant economic worth. This creates strong commercial incentives to recycle them. Green Li-ion shows that circular economy principles work for advanced manufacturing and industrial supply chains as well and not just for consumer products.
Why circular economy businesses are becoming more attractive
The success of these startups reflects broader changes occurring across Southeast Asia’s economy. Consumers are increasingly embracing second-hand products as a way to effectively manage costs while reducing waste produced. Businesses face growing pressures to improve sustainability performance and demonstrate measurable environmental outcomes. Governments are also paying closer attention to waste management and resource efficiency challenges.
The next generation of circular economy winners will not be defined by environmental messaging alone. The strongest businesses will be those that solve operational and supply chain challenges while creating clear economic value for both consumers and businesses alike. Ultimately, waste becomes a far more compelling startup opportunity when viewed as a supply chain problem rather than purely an environmental one. As Southeast Asia’s resource demands continue to grow, startups capable of turning discarded products and materials into productive assets may become some of the region’s most important infrastructure companies.