PadCare Labs has raised $3 million in a pre-Series A round to expand its sanitary waste recycling operations and strengthen its technology platform.
The round was led by Rainmatter, the climate-focused investment arm of Zerodha, with participation from 3one4 Capital, Brigade REAP, PKRBCV Shroff Trust, Lavni Ventures, 3i Partners, and debt financing from EXIM Bank and ICICI Bank.
The startup aims to scale its recycling capacity to 2,000 metric tonnes annually by March 2027 and expand operations across Bengaluru and Delhi NCR.
Orbit App and Operational Expansion
PadCare plans to use the capital to launch Orbit, an app-based offering tailored for housing societies. The app will support structured sanitary waste collection and recycling at the community level.
The company will also invest in leadership hiring, strengthen core operating functions, and accelerate research and development. Expansion of diaper recycling capabilities and growth of Rebirth, its recycled corporate stationery and paper product line, are also on the roadmap.
Patented Technology and National Footprint
Founded in 2018 by Ajinkya Dhariya, PadCare developed patented technology to scientifically recycle used sanitary waste and recover value-added materials for industrial use.
The company operates in 24 Indian cities, including Bengaluru, Mumbai, Delhi, and Chennai. It serves more than 685 clients across 2,000 sites, including large enterprises such as Infosys, Wipro, and the Mahindra Group.
Its client base spans enterprises, manufacturing facilities, educational institutions, and residential communities.
Regulatory Tailwinds and Circular Infrastructure
Meanwhile, Ajinkya Dhariya noted that sanitary waste remains one of the least addressed categories in India’s waste ecosystem. He added that with evolving compliance requirements under the upcoming Solid Waste Management 2026 rules, enterprises face mounting pressure to adopt organised recycling systems.
Echoing similar concerns, Zerodha CEO Nithin Kamath said sanitary waste presents serious environmental and public health challenges that demand technology-led solutions and operational discipline. He further explained that Rainmatter decided to reinvest after observing PadCare’s responsible and measured scaling approach.
Additionally, Nruthya Madappa of 3one4 Capital underscored the importance of scalable waste infrastructure to support India’s urban growth. She pointed to PadCare’s strong unit economics and cross-market traction as key drivers of investment.
Looking Ahead to APAC Expansion
PadCare plans to enter select Asia-Pacific markets by 2027. The company’s strategy combines regulatory alignment, technology differentiation, and structured enterprise partnerships.
With fresh funding and institutional backing, PadCare Labs funding marks another step toward building circular sanitary waste infrastructure in India and beyond.
