PadCare gets $3 million funding to bolster sanitary waste recycling in India

Cleantech start-up PadCare has raised $3 million (Rs 27.2 crore) in a pre-Series A funding to give new momentum to safe collection and recycling of used sanitary pads in India. The funding round was led by Rainmatter, the investment arm of Zerodha.

The round, structured as a mix of equity and debt, also saw participation from 3one4 Capital, Brigade Group, PKRBCV Shroff Trust, and existing backers Lavni Ventures and 3i Partners.

Founded in 2018 by Ajinkya Dhariya, PadCare recycles sanitary pads which is a waste that typically ends up in landfills or is incinerated. The company has developed a proprietary recycling technology and holds an Indian patent for its process, with patents in the US and Europe currently under review.

The fresh capital will primarily be used to scale up recycling capacity. PadCare says it will expand its current Bengaluru facility and set up independent recycling plants in Delhi. These additions are expected to increase its daily processing capacity to 3 metric tonnes, up from the existing 0.5 metric tonnes.

The startup will also invest in strengthening its leadership team and advancing its diaper recycling initiative. Currently, PadCare operates across 24 Indian cities, servicing over 2,000 sites, including 685 corporate clients and 4,000–5,000 households in gated communities.

Financially, the company claims to have maintained EBITDA profitability for the past two years, with margins of 26% and a projected PAT margin of 8% in FY25.

The fundraise comes amid rising investor interest in India’s circular economy and waste management sector, driven by urbanisation, stricter sustainability regulations, and growing ESG commitments. Recently, recycling platform ScrapUncle raised Rs 22 crore to expand operations and develop an in-house e-waste facility.