Nithin Kamath's Rainmatter, others invest $3 million in cleantech startup PadCare Labs

PadCare Labs, a cleantech startup focused on sanitary waste recycling, has raised $3 million in a pre-Series A funding round to scale its recycling capacity to 2,000 MT annually by March 2027 and launch Orbit, an app-based offering for housing societies.

The round was led by Rainmatter by Zerodha, with participation from 3one4 Capital, Brigade REAP and PKRBCV Shroff Trust, Lavni Ventures, 3i Partners, and debt partners EXIM Bank and ICICI Bank.

The startup plans to deploy the fresh capital to scale its recycling operations across Bengaluru and the Delhi NCR region while strengthening leadership and core operating functions. It will also accelerate its R&D efforts, advance diaper recycling capabilities, and expand Rebirth, its portfolio of recycled corporate stationery and paper products.

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 startup operates across 24 cities in India, including Bangalore, Mumbai, Delhi, Chennai, and serves over 685 clients like Infosys, Wipro, Mahindra Group across more than 2,000 sites.

It works with large enterprises, manufacturing facilities, educational institutions, institutes, and residential communities to deliver scalable and sustainable sanitary waste management solutions. The startup is now eyeing expansion into new APAC markets, with entry targeted by 2027.

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.”

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.”