New Delhi, February 10, 2026: PadCare Labs, a clean-technology startup focused on sanitary waste recycling, has raised $3 million in a Pre-Series A funding round to expand its recycling capacity and strengthen its technology-led waste management platform. The round was led by Rainmatter, with participation from 3one4 Capital and Brigade REAP, along with PKRBCV Shroff Trust. Existing investors Lavni Ventures and 3i Partners also participated, while debt financing was supported by EXIM Bank and ICICI Bank.
The Pre-Series A round comprises a mix of equity and debt financing. PadCare plans to utilise the capital to scale its recycling capacity to 2,000 metric tonnes annually by March 2027, launch a new B2C sanitary waste management application called PadCare Orbit, and prepare for expansion into select Asia-Pacific markets by 2027.
The company will deploy the funds to expand recycling operations in Bengaluru and the Delhi NCR region, strengthen leadership and core operating teams, and accelerate research and development. This includes advancing diaper recycling capabilities and expanding Rebirth, its range of recycled paper and corporate stationery products derived from sanitary waste.
Ajinkya Dhariya, Founder and CEO, 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 organised, 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.”
Founded in 2018, PadCare has developed patented technology for the scientific recycling of used sanitary waste, enabling recovery of value-added materials for industrial applications. The company currently operates across 24 cities in India, managing over 2,000 sites and serving more than 685 enterprise, manufacturing, institutional, and residential clients, including large corporate organisations.
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 and operational discipline. We have seen the company scale responsibly over the years, which is why we chose to reinvest in PadCare.”
PadCare has remained PAT positive for two consecutive years, reporting EBITDA margins of 26%, and has recorded a 136% CAGR, supported by a 99.5% client retention rate. In 2025, the company recycled approximately 256 metric tonnes of sanitary waste, resulting in an estimated reduction of 512 metric tonnes of CO₂-equivalent emissions. The startup holds three granted patents, with additional patents under process, and operates at TRL-9 technology readiness.
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