PadCare Labs, a clean-technology startup focused on sanitary waste recycling, has raised $3 million in a pre-Series A funding round led by Rainmatter by Zerodha. The round includes a mix of equity and debt.
The round also saw participation from 3one4 Capital, Brigade REAP and PKRBCV Shroff Trust, and existing investors Lavni Ventures, 3i Partners, and debt partners EXIM Bank and ICICI Bank.
The fresh capital raised will be used to scale its recycling operations across Bengaluru and the Delhi NCR region while strengthening leadership and core operating functions. The company will scale its recycling capacity to 2,000 MT annually by March 2027 and launch Orbit, an app-based offering for housing societies.
PadCare will accelerate its R&D efforts, advance diaper recycling capabilities, and expand Rebirth, its portfolio of recycled corporate stationery and paper products.
To date, the company has raised $5 million in funding from investors, including BIRAC’s LEAP Fund (Venture Center) and Social Alpha, and secured a landmark four-shark investment on Shark Tank India Season 2 from Piyush Bansal, Anupam Mittal, Vineeta Singh, and Namita Thapar.
Founded in 2018 by Ajinkya Dhariya, PadCare has developed patented technology for the scientific recycling of used sanitary waste, enabling the recovery of value-added materials for industrial applications.
The company operates across 24 cities in India, including Bangalore, Mumbai, Delhi, Chennai, and serves over 685 clients like Infosys, Wipro, and the Mahindra Group across more than 2,000 sites.
PadCare works with large enterprises, manufacturing facilities, educational institutions, institutes, and residential communities to deliver scalable and sustainable sanitary waste management solutions.
The company is now eyeing expansion into new APAC markets, with entry targeted by 2027.
Notably, the company has sustained EBITDA profitability over the last two years, maintaining EBITDA margins of 26%, reflecting strong operating leverage and a resilient business model. It has recorded a 136% CAGR and continues to see strong customer stickiness, with a 99.5% client retention rate.
In 2025 alone, PadCare recycled approximately 256 MT of sanitary waste, resulting in an estimated reduction of 512 MT of CO₂-equivalent emissions.
The company also holds three granted patents, with seven more in the pipeline, and operates at TRL-9 technology readiness.
Ajinkya Dhariya, Founder and CEO of PadCare Labs, said, “Sanitary waste management remains one of the most under-addressed challenges within India’s waste ecosystem. As regulations evolve with Solid Waste Management (SWM) 2026 rules and enterprises are held to higher sustainability and compliance standards, the need for organized, transparent recycling infrastructure is becoming unavoidable. This fundraise enables us to expand capacity, strengthen leadership, and build the operational backbone required to scale a circular economy for hygiene waste.”
Nithin Kamath, CEO of Zerodha and Rainmatter, said, “Sanitary waste is a structurally ignored problem with significant environmental and public-health implications. PadCare has demonstrated that this category can be addressed through the right combination of technology & 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.”
Nruthya Madappa, Partner, 3one4 Capital, added, “Sustainable waste infrastructure is essential for India’s urban future, and PadCare is leading the way. Ajinkya Dhariya and the team have deployed their patented technology across multiple markets, building a solution that works environmentally, operationally, and economically. With proven traction and strong unit economics, PadCare is ready to scale nationally. We’re excited to partner with PadCare as they expand operations and deepen their impact.”
Nirupa Shankar, Joint Managing Director, Brigade Group, said, “Personal hygiene waste management is an area that has been overlooked over the years, and it is heartening that Ajinkya and the team at Pad Care are leveraging true innovation for solutions in a space that really needs it. This investment represents our belief that impactful change comes from backing entrepreneurs who successfully combine technology with purpose. Their pioneering work in scalable sanitary waste recycling not only addresses a critical gap in the ecosystem but also sparks louder conversations and creates greater visibility around topics such as menstrual health and effective hygiene products.”
