PadCare Labs, a Bengaluru-based cleantech startup tackling sanitary waste recycling, has raised $3 million in a pre-Series A funding round. The fresh capital will help the company expand its recycling capacity, strengthen operations, and introduce new technology-driven solutions, including an app-based platform for housing societies.
The funding round was led by Rainmatter by Zerodha, the climate-focused investment arm of Nithin Kamath. Other participants included 3one4 Capital, Brigade REAP, PKRBCV Shroff Trust, Lavni Ventures, 3i Partners, along with debt support from EXIM Bank and ICICI Bank.
The investment highlights growing interest in solving one of India’s most overlooked environmental challenges: scientific and scalable sanitary waste management.
Scaling Up to 2,000 Metric Tonnes Annually
PadCare Labs has set an ambitious target. By March 2027, the startup plans to scale its recycling capacity to 2,000 metric tonnes (MT) annually.
Expanding in Key Urban Markets
The company will use the fresh funds to:
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Expand recycling operations across Bengaluru and Delhi NCR
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Strengthen leadership and core operational teams
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Accelerate research and development efforts
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Improve diaper recycling capabilities
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Grow its recycled products portfolio under the Rebirth brand
This expansion is expected to deepen PadCare’s presence in two of India’s largest urban waste markets, where sanitary waste disposal remains a growing concern.
Launching Orbit: An App for Housing Societies
As part of its next phase, PadCare is also launching Orbit, an app-based offering designed for residential housing societies.
The app aims to streamline sanitary waste collection, tracking, and recycling for communities. By digitizing the process, PadCare hopes to create more transparency and accountability in waste management systems.
With increasing urbanization and stricter sustainability expectations, housing societies are under pressure to manage waste responsibly. Orbit is positioned as a practical solution to meet compliance and environmental standards.
Tackling an Ignored Environmental Problem
Sanitary waste management remains one of the least addressed segments within India’s broader waste ecosystem.
The Challenge
Used sanitary products such as:
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Sanitary pads
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Diapers
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Incontinence products
are often disposed of in landfills or incinerated improperly. This creates environmental hazards, health risks for sanitation workers, and long-term pollution concerns.
PadCare has developed patented technology that enables the scientific recycling of used sanitary waste. Instead of simply discarding it, the startup recovers value-added materials that can be used for industrial applications.
Founded in 2018, Now Operating Across 24 Cities
Founded in 2018 by Ajinkya Dhariya, PadCare has grown steadily over the years. Today, the startup operates in 24 cities across India, including:
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Bengaluru
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Mumbai
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Delhi
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Chennai
It serves over 685 clients across more than 2,000 sites. Its client base includes major corporations such as Infosys, Wipro, and Mahindra Group, along with manufacturing units, educational institutions, and residential communities.
The company focuses on delivering scalable and sustainable sanitary waste management solutions tailored to enterprise needs.
Rebirth: Turning Waste Into Useful Products
One of PadCare’s key initiatives is Rebirth, its portfolio of recycled corporate stationery and paper products.
By converting recovered materials into usable items, the company supports a circular economy model. This approach not only reduces landfill waste but also demonstrates how difficult waste streams can be transformed into practical, market-ready products.
With fresh funding, PadCare plans to expand this portfolio further and improve its recycling technology to handle more complex waste categories, including diapers.
Preparing for Regulatory Changes
India’s waste management regulations are evolving. The upcoming Solid Waste Management (SWM) 2026 rules are expected to push enterprises toward stricter compliance and higher sustainability standards.
Ajinkya Dhariya, Founder and CEO of PadCare Labs, emphasized the urgency of addressing sanitary waste.
“Sanitary waste management remains one of the most under-addressed challenges within India’s waste ecosystem. As regulations evolve with SWM 2026 rules and enterprises are held to higher sustainability and compliance standards, the need for organized, transparent recycling infrastructure is becoming unavoidable,” he said.
This regulatory shift could create significant opportunities for companies like PadCare that already have structured, compliant systems in place.
Why Rainmatter Is Reinvesting
Rainmatter, led by Zerodha CEO Nithin Kamath, focuses on climate and sustainability-focused startups. Its continued backing of PadCare signals confidence in both the business model and long-term impact.
Kamath described sanitary waste as a structurally ignored problem with serious environmental and public health implications.
“PadCare has demonstrated that this category can be addressed through the right combination of technology and operational discipline. We have seen the company scale responsibly over the years, which is why we chose to reinvest in PadCare. We will be supporting them as they build long-term, circular infrastructure for India,” he said.
Rainmatter’s reinvestment suggests that PadCare has delivered consistent progress and measurable impact since its earlier funding rounds.
Eyeing Expansion Into APAC Markets
Beyond India, PadCare is setting its sights on international growth. The company plans to enter new Asia-Pacific markets by 2027.
Expanding into APAC could significantly broaden its footprint, especially in rapidly urbanizing regions facing similar waste management challenges.
However, scaling internationally will require adapting to local regulations, infrastructure differences, and partnership models. The newly raised capital is expected to lay the groundwork for that expansion.
The Bigger Picture for India’s Cleantech Sector
PadCare’s funding round reflects a broader trend in India’s startup ecosystem: growing investor interest in climate-focused and sustainability-driven solutions.
As corporations face pressure to meet environmental, social, and governance (ESG) standards, demand for organized waste management infrastructure is rising.
Sanitary waste, once largely ignored, is now emerging as a serious environmental issue requiring specialized solutions.
With $3 million in fresh capital and strong institutional backing, PadCare Labs appears well-positioned to scale its operations, deepen its technology capabilities, and expand beyond India in the coming years.
If successful, the startup could help redefine how one of the most challenging waste streams is managed—not just in India, but across emerging markets.
