PadCare Labs, a Pune-based cleantech startup specialising in sanitary waste management, has secured $3 million in a Pre-Series A funding round led by Rainmatter, the investment arm founded by Zerodha co-founder Nithin Kamath, with participation from institutional investors and existing backers. The round combines equity and debt, underscoring investor confidence in PadCare’s sustainable, scalable model.
Addressing India’s overlooked sanitary waste challenge
Sanitary waste is a largely neglected segment of India’s waste stream. Millions of used pads and hygiene products are discarded daily; much of this waste ends up in landfills or is incinerated, exacerbating environmental pollution and public health risks.
Founded in 2018 by social entrepreneur Ajinkya Dhariya, PadCare Labs has developed patented processes to scientifically recycle used sanitary products. The company operates an end-to-end ecosystem—collection, reverse logistics and centralised recycling facilities—to recover valuable materials and convert them into industrial-grade outputs.
PadCare currently serves more than 20 cities across India, partnering with corporate offices, educational institutions, manufacturing units and residential communities. Its technology-driven approach is formalising a fragmented segment of urban waste management and creating a replicable model for circular sanitation solutions.
Expansion plans and capability building
The fresh capital will be used to scale recycling capacity and expand operations in key metro markets such as Bengaluru and Delhi NCR, while strengthening the company’s operational backbone and leadership team.
A portion of funds will support research and development to enhance recycling efficiency and to diversify into adjacent waste streams, including diaper waste management. As public awareness of hygiene and responsible disposal rises, demand for structured recycling services is expected to grow.
PadCare is also preparing to roll out an app-based collection model tailored to residential societies, targeting households that currently lack organised disposal mechanisms and representing a significant untapped market.
Investor sentiment and sector context
Investors backing PadCare view sanitary waste management as a structurally under-addressed problem with long-term relevance. With increasing emphasis on ESG (Environmental, Social and Governance) compliance and sustainability mandates, organised waste-management providers are becoming essential partners for corporates and urban local bodies.
Rainmatter’s participation signals growing interest among climate-focused investors in scalable, impact-driven startups. As India tightens waste-management regulations and promotes circular-economy frameworks, companies like PadCare are well positioned to benefit from regulatory tailwinds.
The funding round highlights a broader trend: climate-tech and waste-management ventures are gaining traction with institutional capital. With proven operations and expanding market presence, PadCare Labs is emerging as a notable player in India’s circular economy landscape.
