Indian specialty chemicals startup Scimplify has raised $25 million in an all-equity strategic round led by Hitachi Ventures, as manufacturers seek alternatives to Chinese suppliers of critical materials. Customers Henkel and Teknor Apex joined as new investors, alongside existing backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital. The Bengaluru-based company said the investment brings its total equity funding to $80 million, though it declined to disclose its valuation. A person familiar with the transaction put the post-money valuation at $250 million, up from $150 million following a $40 million Series B round in March 2025.
Scimplify, founded in 2023, uses artificial intelligence to speed the development and production of specialty chemicals and critical materials, with semiconductors, defense, and energy identified as key growth markets. Co-founder Sachin Santhosh said the startup has in some cases moved from receiving a customer's requirements to delivering finished material in two months, compared with the 12 to 18 months such work would typically take. After an order arrives, Scimplify develops chemical manufacturing processes at its research facilities in Bengaluru and Hyderabad and transfers them to partner factories for commercial production.
The company's proprietary AI platform, Scinode, coordinates that work by identifying suitable production routes and manufacturing facilities while tracking quality and regulatory requirements. Santhosh said the platform relies on specialized AI agents for functions including research, manufacturing, and quality control, each solving for customer needs by working backward from requirements. An in-house team of scientists and engineers oversees production across a network of more than 500 manufacturing facilities. About 90% of Scimplify's manufacturing currently takes place in India, but the startup plans to expand its production network to the U.S. and Japan over the next year.
The U.S. has become a key growth market, with Scimplify's annualized revenue run rate there rising sixfold to about $60 million from $10 million a year earlier, according to Santhosh. The market now represents roughly 30% of its business, while customers outside India contribute more than half of revenue, up from less than 5% about 18 months ago. Overall, the startup said it has reached an annualized revenue run rate of about $200 million, tripling from a year earlier, and is targeting $400 million over the next year. Scimplify has been EBITDA-positive for the past two months and expects to turn profitable after tax this month.
Energy, electronics, and defense now account for about 45% to 50% of revenue, up from less than 15% a year ago, as AI drives demand for electronics and energy materials and ongoing wars fuel defense demand. Scimplify is working on producing tungsten derivatives from scrap and on rare-earth materials, categories where supply is heavily concentrated in China. The company serves more than 1,000 customers and has delivered products to more than 40 countries, working with customers including TDK, BASF, and Hitachi.
With the new funding, Scimplify plans to allocate around $7.5 million to U.S. expansion, including building out its manufacturing network, and another $2 million for further development of Scinode. Santhosh said the allocation could change as plans evolve. The startup employs about 340 people, including roughly 70 scientists, mostly based in India, with local teams in the U.S., Japan, Indonesia, and the UAE.
More company and startup news from TechManNews.
