The funding round, which comprised a mix of equity and debt, also saw 3one4 Capital, PKRBCV Shroff Trust, Brigade Reap and existing investors Lavni Ventures, and 3i Partners participate.
The company plans to deploy the capital to ramp up its recycling capacity, expand its operations across Bengaluru and Delhi NCR, and strengthen its leadership and core operating functions.
“One of the reasons we raised this round is to explore global market potential, specifically in the APAC region, starting with Singapore,” founder and chief executive Ajinkya Dhariya told ET. “We are conducting market research so that when we move towards our next funding round in about 18 months, we can focus more on execution.”
Founded in 2018, the Pune-based startup provides menstrual hygiene management solutions for corporates and institutions, leveraging its proprietary technology to recycle sanitary napkins.
PadCare Labs has a presence in 24 cities, including Delhi, Mumbai, Bengaluru and Chennai, and works with over 685 corporate clients, including Infosys, Accenture, JP Morgan and Morgan Stanley across more than 2,000 locations. It also partners with around 20-25 educational institutions across the country, including IIM Bangalore and Ashoka University.
According to Dhariya, the company plans to expand its processing capacity from about 500 kg per day to 3 tonnes per day over the next 12 months. PadCare Labs recently expanded its offerings to housing complexes and gated communities in cities such as Mumbai and Bengaluru and is now looking to expand into recycling diapers by March.
“We are targeting the household segment, a largely untapped market, starting with housing societies in Pune and Bengaluru,” he said.
PadCare has remained Ebitda profitable for the past two years, with margins of around 26%, and has clocked a 136% compound annual growth rate, said Dhariya.
The company will now focus on expanding ‘Rebirth’, its portfolio of recycled corporate stationery and paper products. “The pulp and plastic obtained after recycling are converted into sustainable products such as printing paper and plant pots, which are then returned to our clients,” he added.
The startup has raised a total of $5 million till date.
“Sanitary waste is a structurally ignored problem with significant environmental and public-health implications…We have seen the company scale responsibly over the years, which is why we chose to reinvest in PadCare,” said Rainmatter’s Kamath.
“PadCare is creating a new category at the intersection of sustainability, compliance, and climate infrastructure. The team’s ability to translate patented technology into reliable, multi-city execution — with strong unit economics — gives us confidence in their potential to scale this solution nationally,” said Pranav Pai, founding partner at 3one4.
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