Business
Adithi Gurkar
Feb 12, 2025, 10:38 AM | Updated Mar 03, 2025, 04:27 PM IST
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Imagine walking into a public restroom that doesn’t make you cringe. A place that is not just clean but also welcoming — perhaps even luxurious.
For most of us, this is a far-fetched dream, especially in a country where public sanitation is often overlooked or, at best, treated as an afterthought.
But what if using a public restroom could be an experience rather than a last resort?
This is precisely what Lavato, a premium sanitation startup, has set out to achieve.
Born out of a simple yet pressing need for high-quality public restrooms, Lavato envisions a future where hygiene, convenience, and even comfort aren’t luxuries but accessible necessities.
As with any ambitious mission, the journey thus far hasn’t been without its challenges. From navigating regulatory roadblocks to reshaping cultural attitudes towards sanitation, Lavato’s story has been one of innovation, persistence, and adaptation.
The Kickstart
Its journey began with a bold experiment: reimagining the humble public restroom as a premium service.
Their inaugural venture, located near Krishnagiri, along the bustling Chennai-Bengaluru highway, offered a peek into their ambitious vision.
Situated amidst familiar stops like McDonald's and Saravana Bhavan, the facility boasts features reminiscent of modern information technology (IT) campuses — separate amenities for men and women, a dedicated space for people with disabilities, and even a premium shower facility at an additional cost.
Equipped with turnstiles and sensor-operated soap dispensers, the Lavato restrooms rival the standards often found in international airports.
In 2019, Swarajya provided an in-depth look at what the Krishnagiri outlet had to offer. This time, the attempt is to explore how Lavato has evolved in the years since. Has the company successfully scaled its business? Has public perception shifted regarding the willingness to pay for premium sanitation services?
And, perhaps most importantly, what challenges cropped up — both regulatory and the broader societal mindset towards shared responsibility in maintaining public infrastructure?
This writer visited Lavato’s headquarters in January and met with the company's founder and chief executive officer (CEO), Naveen Singh.
"The Krishnagiri outlet became our living laboratory, dispelling the hospitality industry's scepticism about monetising what has traditionally been viewed as a complimentary service," the Indian Institute of Management Bangalore (IIMB) alumnus explained.
This initial hypothesis — that people would pay for quality sanitation — proved to be just the beginning of a much larger business revelation.
Turns out, not only was there a market willing to pay for elevated restroom experiences, but this premium service could also anchor an entire ecosystem of auxiliary businesses.
The pilot demonstrated that a well-maintained restroom facility could serve as a nucleus around which cafes, convenience stores, and other service-oriented businesses could thrive.
Having served 3.5 lakh customers since 2018, the pilot project served as a crucial validation for Lavato. The success led to the incubation of the company within the prestigious NSRCEL at IIMB.
The company then expanded from a single founder to a dedicated bunch of professionals. Subsequently, a bigger team and stronger credentials drew in investors, empowering Lavato to gradually scale up operations.
Lessons From Krishnagiri
Before moving ahead, the team prioritised a thorough analysis of the Krishnagiri prototype, seeking to glean valuable insights into user behaviour, operational challenges, and market demand.
Tracing back the steps, they noted that land procurement was their first hurdle. When Singh approached landowners of Krishnagiri to lease their land to Lavato, a hesitation set in the moment they heard the term "toilet."
It wasn't as if there wasn't enthusiasm around the concept. Many even encouraged the founder in his endeavour. But it did not necessarily translate to willingness to part with land.
It was only after the panchayat was brought aboard — persuaded by the promise of local employment opportunities and the prestige of hosting India’s first premium public restroom — that the founder was able to secure the site where the prototype stands today.
Next up was raising awareness, which posed an entirely different challenge.
When the outlet first opened, its minimalist signage and sleek and modern exteriors stood in stark contrast to the typical, often poorly maintained public restrooms. The Lavato restroom seemed almost too refined to be a restroom, some even mistaking it for a corporate office rather than a public convenience facility.
So the company decided to make the signage more explicit and clearly indicate the services on offer.
A Tiered Approach to Sanitation
This writer was curious about any potential plans to introduce automated facilities like those, say, in Japan. Singh's response highlighted a deeper cultural challenge.
He pointed to two key issues that have hindered technological advancements in Indian public sanitation: a general lack of toilet etiquette and a limited sense of social responsibility towards shared infrastructure.
Singh recounted a particularly telling experience drawn from the Krishnagiri facility. "Take the instance of the bidet that was installed in the women's restroom. We were initially quite proud to offer an amenity typically found only in upscale hotels and private residences in India.
However, despite clear instructional signage, we encountered persistent misuse. The bidet, designed specifically for post-urination hygiene, was being used for purposes it was never intended for. The situation eventually deteriorated to the point where our maintenance staff, overwhelmed by the resulting sanitation issues, pleaded for its removal."
Then, why not automate the cleaning process? “The challenge,” Singh explained, “lies in the fact that many users struggle with handling sophisticated technology delicately. We initially considered installing a basin equipped with laser-based self-sanitisation, but during trials, an individual inadvertently injured themselves.
"Additionally, much of this advanced technology relies on multiple control buttons — something that, unfortunately, many users tend to press repeatedly, often out of curiosity or a force of habit. This not only disrupts functionality but also significantly reduces the lifespan of what are otherwise expensive and high-maintenance installations.”
Segmentation
“Our survey at the Krishnagiri outlet revealed that consumer preferences vary significantly across different segments, allowing us to tailor facilities accordingly," he said.
"Out of the 100 respondents, the majority were willing to pay a modest premium for access to clean restrooms, while others expressed interest in additional amenities, such as convenience stores and cafes," he added.
"A select group — the crème de la crème — demonstrated a willingness to pay a substantial premium for a more luxurious experience, akin to an airport lounge. For this segment, we envision high-end facilities that include shower rooms, sleeping pods, workstations, and secure lockers, catering to those seeking both comfort and convenience during their travels," Singh said.
Lavato, therefore, has come up with a three-tier classification for their business:
– Economy (just toilets)
– Premium Economy (toilets, showers, cafes, convenience stores)
– Luxury (a lounge similar to that in airports, with services such as sleeping pods, bathrooms, and spas)
Lavato is currently focused on the first two consumer segments — those who seeking clean and functional restrooms at a reasonable price and those willing to pay slightly more for added conveniences, such as cafes and retail outlets.
The company's ideal consumer demographic for highway outlets includes corporate professionals, students, and employees who need to freshen up before meetings or interviews, as well as visitors attending brief events like weddings and other ceremonies.
Lavato has streamlined its operations into two key business verticals: constructing restrooms and managing operations. “Building a large number of toilets independently would be financially unfeasible given the high capital expenditure,” Singh said. “Instead, we aim to work within the budgets of those who approach us, offering tailored restroom solutions based on our existing models.”
The company's revenue model is designed to be multifaceted, incorporating earnings from construction commissions, franchise fees, and royalty fees based on the revenue generated. Additionally, a one-time fixed subscription fee is sought to be charged irrespective of usage.
To further enhance financial sustainability, Lavato plans to develop and lease out spaces to cafes and convenience stores — both as an additional revenue stream and as a means to increase footfall at their outlets.
Other Facilities
When asked whether these designs were successfully implemented anywhere, Swarajya was informed of three completed projects.
The first, which the CEO highlighted with particular pride, is Lavato’s outlet at Skandagiri, developed in collaboration with the Karnataka Forest Department.
Situated approximately 70 kilometres (km) from Bengaluru, this facility was designed with a strong emphasis on sustainability, utilising eco-friendly materials to minimise environmental impact. It is strategically positioned to serve the needs of trekkers visiting the site.
The second project is a men’s urinal bay constructed by Lavato in collaboration with the Coimbatore City Municipal Corporation. This facility, powered by solar panels, is offered free of charge to users, as it is not managed or operated directly by Lavato.
According to Singh, viability in any such urban settings in the future would depend on government approval for a higher density of restroom facilities within a region. “Only with a sufficient concentration of outlets can we deploy a mobile cleaning unit to service them efficiently,” he noted.
However, he acknowledged a broader challenge — the reluctance of bureaucrats to allocate budgets for premium public restrooms, given that traditional washrooms can be constructed at a fraction of the cost. This fundamental mismatch in cost perception, he observed, remains a significant barrier.
Could Lavato not refurbish existing public washrooms instead?
According to Singh, in most cases, it is more practical to develop greenfield projects rather than attempt to revamp brownfield facilities.
He explained that the challenges associated with retrofitting older structures — particularly the need for extensive customisation — often lead to escalating costs.
Additionally, such modifications can compromise the standardisation that is essential for maintaining quality and operational efficiency across multiple locations.
The third is a potential project at a UNESCO World Heritage site. Sites that have a protected status in India generally need clearances from the Archaeological Survey of India (ASI). Lavato's mandate usually will be to have its designs align with the site’s historical and architectural aesthetics.
While regulations for constructing toilets are relatively flexible — requiring only the approval of the district health inspector upon completion — heritage sites and temples present distinct challenges.
Despite receiving an invitation from the Municipal Corporation to build the toilets, Lavato has had to navigate multiple layers of bureaucracy and competing jurisdictions due to the UNESCO designation.
This includes securing approval from ASI’s central authority while simultaneously placating authorities from the temple board, the state endowment department, and the local panchayat.
Such bureaucratic complexities, Singh says, are likely to be a recurring challenge for the company, particularly at renowned temples with high visitor footfall, where opportunities for expansion are significant.
Government's Role
The government happens to be the biggest stakeholder in public toilet infrastructure. This is because, explains Singh, the state happens to be the largest holder of real estate, both in terms of strategic locations and quantity.
While taking up private land poses distinct challenges, like finding willing leasers and high rents, the government, already in possession of prime property, can incentivise premiumisation like no one else.
Therefore, it will be beneficial if the central and state governments take the initiative in allotting land. This would enable the private sector to cut through the red tape.
Ease of business in this space would be further enhanced if funds to build and permissions to maintain and operate the toilets were sanctioned for 20-to-30-year periods, much like how it is with tolls on highways.
Additionally, the government could forgo commission and provide tax rebates to help accelerate the privatisation
While Lavato's current portfolio is public knowledge, Singh alludes to several projects in various stages of negotiation, the details of which remain under wraps because they are in the nascent stage, while there are also confidentiality obligations.
Vision
The Ministry of Road Transport and Highways has recently mandated that all fuel stations must provide toilet facilities. Singh sees this as a strategic opportunity for Lavato.
“If a fuel station owner is required to maintain a public toilet and offer it free of charge, there is little incentive for its upkeep, risking the same neglect that plagues government-established facilities,” he explains. “This is where Lavato steps in, providing a sustainable and profitable solution that benefits both proprietors and customers.”
Lavato’s vision extends beyond merely enhancing public restroom facilities for Indians. The company aspires to play a pivotal role in environmental sustainability by preventing bio-waste from polluting sacred water bodies through composting and biogas production.
The company’s journey underscores a broader shift in India’s approach to public sanitation — one that moves beyond mere functionality to embrace hygiene, sustainability, and even user experience.
By positioning restrooms as more than just a necessity, the company is challenging longstanding perceptions and demonstrating that quality sanitation can be both desirable and commercially viable.
Yet, as Lavato continues to expand, it faces an uphill battle — not just in navigating regulatory frameworks but also in reshaping cultural attitudes towards public infrastructure.
Its success will ultimately hinge on striking a balance between accessibility and financial sustainability, ensuring that premium sanitation services are not just a niche offering but an integral part of India’s evolving urban and rural landscapes.
Lavato stands at a critical inflection point. If it can successfully scale its model while maintaining its core values of hygiene, convenience, and environmental responsibility, it may well set a new benchmark for public sanitation in India — one where clean, well-maintained restrooms are no longer an exception but an expectation.
Adithi Gurkar is a staff writer at Swarajya. She is a lawyer with an interest in the intersection of law, politics, and public policy.