PadCare Labs Raises $3 Mn to Scale Sanitary Waste Recycling

Sanitary waste has long remained one of the least organised segments within India’s waste management ecosystem. PadCare Labs, a clean-technology startup focused on recycling sanitary waste, is now scaling its operations to address this gap at an enterprise level.

The company has raised $3 million in a pre-series A round, led by Rainmatter by Zerodha, with participation from 3one4 Capital, Brigade REAP, and PKRBCV Shroff Trust. Existing investors Lavni Ventures and 3i Partners, along with debt partners EXIM Bank and ICICI Bank, also participated. The round comprises a mix of equity and debt financing.

Moving Sanitary Waste from Compliance Risk to Managed Infrastructure

PadCare plans to use the capital to expand its recycling capacity to 2,000 metric tonnes annually by March 2027, while scaling operations across Bengaluru and Delhi NCR. The company will also strengthen its leadership and core operational teams to support growth.

A key part of this expansion includes the launch of PadCare Orbit, a B2C app designed for housing societies to manage sanitary waste in a structured and compliant manner. Alongside this, the startup will accelerate R&D efforts, expand diaper recycling capabilities, and grow Rebirth, its portfolio of recycled corporate stationery and paper products.

As the world’s first sanitary waste disposal and recycling system, PadCare is also planning to enter new APAC markets by 2027.

Regulation and Enterprise Pressure Drive Demand

Sanitary waste is recognised under India’s solid waste management framework, yet scalable recycling solutions have remained limited. As regulations evolve under the Solid Waste Management (SWM) 2026 rules, enterprises and housing communities are facing increased pressure to ensure compliance, traceability, and sustainability reporting.

“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 organised, transparent recycling infrastructure is becoming unavoidable,” said Ajinkya Dhariya, Founder and CEO, PadCare Labs.

“This fundraise enables us to expand capacity, strengthen leadership, and build the operational backbone required to scale a circular economy for hygiene waste.”

Enterprise Traction and Profitability

Founded in 2018, PadCare operates across 24 cities in India, managing more than 2,000 sites and serving over 685 enterprise, manufacturing, and residential community clients. Its client base includes organisations such as Infosys, Wipro, and Mahindra Group.

The company works with enterprises, manufacturing facilities, educational institutions, and residential communities, offering an end-to-end model that integrates on-site collection infrastructure, compliant logistics, scientific recycling, and ESG-aligned reporting.

Notably, PadCare has remained PAT positive for two consecutive years, delivering EBITDA margins of 26%, reflecting operational discipline in a category traditionally seen as cost-heavy.

Investor View: Infrastructure, Not Experimentation

Investors backing the round see sanitary waste recycling as long-term urban infrastructure rather than a niche sustainability play.

“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,” said Nithin Kamath, CEO, Zerodha and Rainmatter.

“We have seen the company scale responsibly over the years, which is why we chose to reinvest in PadCare.”

From an institutional perspective, execution and unit economics remain central.  “Sustainable waste infrastructure is essential for India's urban future, and PadCare is leading the way,” said Nruthya Madappa, Partner, 3one4 Capital. “With proven traction and strong unit economics, PadCare is ready to scale nationally.”

Beyond infrastructure, the company’s work is also bringing attention to hygiene waste management as a public and urban issue.

“Personal hygiene waste management is an area that has been overlooked over the years,” said Nirupa Shankar, Joint Managing Director, Brigade Group. “This investment represents our belief that impactful change comes from backing entrepreneurs who successfully combine technology with purpose.”

In 2025 alone, PadCare recycled 256 MT of sanitary waste, leading to an estimated reduction of 512 MT of CO₂-equivalent emissions. The company reports a 99.5% client retention rate, a 136% CAGR, and operates with TRL-9 technology readiness. It holds three granted patents, with seven more in the pipeline.

To date, PadCare has raised $5 million and continues to position sanitary waste recycling as a critical layer of urban and enterprise infrastructure, rather than an afterthought.