Sortrace raises SEK8M for AI-based waste detection, to help cities improve recycling rates and understand where action is necessary
Sortrace, a Stockholm-based startup offering technology for AI-based waste detection to help helps cities improve recycling rates, today announced its first proper funding round, amounting to SEK8M led by Almi Invest. Gorilla Capital, existing investor Antler, and angel investors also participated.
While the waste management sector handles vast quantities of material, it has long lacked data on what is actually being placed in the bins — a situation Sortrace aims to change.
The company's solution is built around sensor- and camera-based continuous on-truck data capture, creating a visual record of every pickup. Sortrace says its AI detects waste contamination and improperly sorted fractions automatically at the bin and route level.
Local government officials responsible for waste management can access data and insights from the startup's monitoring system through dashboards.
"We make sorting errors visible at the point of collection, enabling municipalities to take targeted action where it is actually needed” says co-founder and CEO Rahel Surshi.
Sortrace launched its product in 2025. The first system was up and running in October last year. Since then, the startup secured five paying municipalities in Sweden under contract, with more in the pipeline, according to Rahel Surshi. The company is also in discussions with private-sector entities, he adds.
Sortrace was founded in late 2024 by Rahel Surshi and Tomas Kjellstrand, and received early backing from Antler.
I covered the fundraising for this round in Swedish Tech News PRO on May 4.