Clean-Tech Startup PadCare Labs Raises $3 Mn Led by Rainmatter

Why It Matters

The infusion of equity and debt accelerates PadCare's ability to meet rising demand for compliant sanitary‑waste solutions, positioning it as a key player in India's circular‑economy transition and attracting further institutional interest in clean‑tech infrastructure.

Key Takeaways

• Funding: $3 M equity‑debt round led by Rainmatter.
• Aim: 2,000 t annual capacity by March 2027.
• Operating in 24 Indian cities, 2,000+ sites.
• EBITDA margins at 26 %, PAT‑positive two years.
• Launching PadCare Orbit B2C app for housing societies.

Pulse Analysis

India’s sanitary‑waste sector is undergoing rapid formalization as municipalities tighten regulations and corporate sustainability mandates intensify. Traditional disposal methods, often unsanitary and environmentally harmful, have created a market vacuum for scalable, compliant recycling solutions. PadCare Labs has leveraged patented technology to convert waste into marketable paper products, carving a niche that aligns with the country’s broader circular‑economy goals and the global push for responsible waste management.

The recent $3 million financing blend of equity and debt underscores growing investor confidence in clean‑tech infrastructure. Lead investor Rainmatter, known for backing climate‑focused ventures, joined forces with 3one4 Capital, Brigade REAP, and PKRBCV Shroff Trust, while legacy backers Lavni Ventures and 3i Partners reinforced their commitment. Funds are earmarked for expanding processing capacity to 2,000 metric tonnes per year, establishing hubs in Bengaluru and Delhi NCR, and bolstering the leadership team. This capital structure not only fuels operational growth but also mitigates financial risk through strategic debt participation from EXIM and ICICI banks.

Looking ahead, PadCare’s launch of the PadCare Orbit app signals a strategic pivot toward the B2C segment, targeting housing societies that grapple with waste segregation and disposal. Coupled with plans to penetrate the APAC region, the company aims to replicate its Indian success in markets with similar regulatory pressures. Sustained 26 % EBITDA margins and consecutive profitability further validate its business model, suggesting that PadCare could become a benchmark for scalable, profitable clean‑tech enterprises in emerging economies.

Clean-tech startup PadCare Labs raises $3 Mn led by Rainmatter

By Shashank Pathak · 10 Feb 2026 17:58 IST

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Clean‑tech startup PadCare Labs has raised $3 million in a pre‑Series A funding round led by Rainmatter, with participation from 3one4 Capital, Brigade REAP, and PKRBCV Shroff Trust.

Existing investors Lavni Ventures and 3i Partners also participated, along with debt support from EXIM Bank and ICICI Bank. The round includes a mix of equity and debt.

The fresh capital will be used to:

• Scale recycling capacity to 2,000 metric tonnes annually by March 2027.

• Expand operations across Bengaluru and Delhi NCR.

• Strengthen leadership and core operational teams.

Founded in 2018 by Ajinkya Dhariya, PadCare Labs operates in the sanitary‑waste recycling segment, focusing on building compliant and scalable recycling infrastructure. The startup currently operates across 24 cities in India, manages over 2,000 sites, and serves more than 685 enterprise, manufacturing, and residential clients.

PadCare also plans to launch PadCare Orbit, a B2C app focused on sanitary‑waste management for housing societies, and expand its presence across the APAC region.

PadCare has developed patented technology for recycling used sanitary waste and also operates Rebirth, a portfolio of recycled stationery and paper products. The firm claims to have been PAT‑positive for the last two years, with EBITDA margins of 26 %.

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