Ingka Investments, the investment arm of Ingka Group – the largest IKEA retailer – announces investment in RECO, a company offering innovative end-to-end solutions for food waste management in South Korea.
Ingka Investments, the investment arm of Ingka Group, today announced it is the lead investor in a KRW 58.5 billion (EUR 37 million) growth funding round for RECO Co. Ltd., a South Korean business-to-business platform providing hauling, recycling and environmental consulting services. RECO offers end-to-end solutions for food and commercial waste recycling. Working together with downstream processors, food waste is turned into animal, aquaculture and insect feed, or alternatively biogas and compost.
The move is part of Ingka’s commitment to support the transition to a circular economy by investing in companies that are developing technology or growing capacity to prevent waste or supply recycled materials. Globally, over 1 billion tonnes of food are wasted annually, contributing to 8-10% of all greenhouse gas emissions and putting a strain on essential resources like water, energy, and land. South Korea is widely regarded as one of the world’s most advanced markets for waste segregation, driven by strict recycling and food waste regulations dating back to the 1990s.
Lukas Visser, Head of Circular Investments at Ingka Group
“South Korea leads the way in advanced waste management systems, and RECO exemplifies how innovative solutions can tackle pressing challenges like food waste. RECO’s commitment to transparency, resource recycling, and digital transformation aligns perfectly with Ingka’s vision for a circular economy. By investing in RECO, we aim to amplify their impact while driving meaningful change beyond our own operations – contributing to a better world, ensuring sustainable practices and a brighter future for all.”
RECO holds licenses for over sixty different waste streams and, together with its partners, offers vertically integrated solutions for each material stream. The total volume of waste managed by RECO in 2024 was approximately 300,000 metric tonnes.
“This significant global investment from a reputable investor like Ingka Investments highlights the growing importance of the waste management industry and underscores the competitive strengths of South Korea’s waste market,” said Ken Kim, founder and CEO of RECO. “RECO remains committed to enhancing its industry-leading waste management services in South Korea while driving sustainable innovation globally through synergies with Ingka Group.”
Ingka Group established its circular investment portfolio in 2017 to invest in companies contributing to the transition to a circular economy. The portfolio focuses on materials with a high carbon footprint, for which recycling infrastructure is lacking and which are relevant for our retail operations. Its aim is to grow profitable businesses that avoid millions of tonnes of CO2e and increase the availability of recycled material on the market.
This investment complements Ingka Investments’ existing minority holding in Winnow, whose AI technology helped Ingka halved its pre-consumer food waste in 2021, nine years prior to the SDG target 12.3 of the United Nations.
About Ingka Investments
Ingka Investments is the investment arm of Ingka Group, the largest IKEA retailer. They invest in assets, manage companies, and operate strategic businesses to preserve and create value for Ingka Group and IKEA – now, and for generations to come. Taking a long-term approach, they responsibly invest across six strategic areas: forestland, renewable energy, real estate, circular, financial markets, and business acquisitions and venture investments. Ingka Investments supports the circular economy by investing in companies that are growing recycling infrastructure to close the gap between capacity and demand.
Further information on Ingka Investments: www.ingka.com/what-we-do/ingka-investments/
About Ingka Group
With IKEA retail operations in 31 markets, Ingka Group is the largest IKEA retailer and represents about 90% of IKEA retail sales. It is a strategic partner to develop and innovate the IKEA business and help define common IKEA strategies. Ingka Group owns and operates IKEA sales channels under franchise agreements with Inter IKEA Systems B.V. It has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Read more on www.Ingka.com
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