Indian startup Scimplify has raised $25 million in fresh funding to expand its AI-powered specialty chemicals and materials manufacturing business, as companies worldwide look for alternatives to supply chains heavily dependent on China.
The Bengaluru-based company plans to use the investment to strengthen its presence in the United States, develop its AI platform, and expand production capabilities in areas such as semiconductors, energy infrastructure, and defense. These industries increasingly need reliable access to specialized materials used in advanced electronics and industrial applications.
The latest all-equity funding round was led by Hitachi Ventures, with existing investors and customers participating. Chemicals companies Henkel and Teknor Apex also joined the round as new investors. Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital took part as well.
Scimplify said the new investment brings its total equity funding to $80 million. Although the company did not disclose its current valuation, a person familiar with the transaction told TechCrunch that it was valued at $250 million following the round.
Why Scimplify Is Focusing on Critical Materials
Manufacturers are increasingly seeking alternative suppliers for chemicals and materials that are difficult to source outside a limited number of countries. China plays a major role in several critical-material supply chains, creating concerns for companies that want to reduce dependence on a single market.
Finding a promising chemical formulation is only one part of the challenge. Manufacturers must also develop a reliable production process, identify suitable facilities, meet quality and regulatory requirements, and scale production without compromising consistency.
These steps can take months or longer, especially for specialized materials used in highly regulated industries.
Scimplify aims to make this process faster by combining scientific expertise, manufacturing partnerships, and artificial intelligence. Rather than focusing only on discovering new materials, the company helps turn customer requirements into commercially manufactured products.
Founded in 2023, the startup works with customers to develop production processes at its research facilities in Bengaluru and Hyderabad. Once the process is ready, it transfers production to partner factories for manufacturing at commercial scale.
Co-founder Sachin Santhosh told TechCrunch that some projects have progressed from customer requirements to delivery in around two months, compared with the 12 to 18 months that similar work might typically take. The timeline varies depending on the material and project requirements.
How Scimplify Uses AI to Manage Manufacturing
At the center of Scimplify’s approach is Scinode, its proprietary AI platform designed to coordinate different stages of chemical development and production.
The platform helps identify suitable manufacturing routes and facilities while tracking quality standards and regulatory requirements. It also uses specialized AI agents for tasks related to research, manufacturing, and quality control.
According to Santhosh, these agents work backward from a customer’s requirements to help determine how a material should be produced and delivered. Retaining relevant customer context can also help the company handle future projects more efficiently.
The AI system supports the process, but scientists and engineers remain central to the work. Scimplify’s in-house team oversees production through a network of more than 500 manufacturing facilities.
This model allows the company to work with established manufacturing partners rather than relying entirely on its own factories. It can use its research and engineering capabilities to develop production processes, then match those processes with suitable facilities.
The approach is particularly relevant for specialty chemicals, where manufacturing conditions, product consistency, and regulatory compliance can be as important as the underlying chemical formulation.
Semiconductors, Energy and Defense Drive Growth
Scimplify is seeing increasing demand from industries that require specialized materials for advanced manufacturing and infrastructure.
According to Santhosh, energy, electronics, and defense accounted for approximately 45% to 50% of the company’s revenue, compared with less than 15% a year earlier.
Several developments are contributing to this shift. Growing investment in AI infrastructure is increasing demand for electronics and energy systems, while defense-related requirements are creating additional demand for specialized materials.
Scimplify is also exploring ways to recover value from existing resources. One of its projects involves producing tungsten derivatives from scrap, potentially providing customers with another source of materials whose supply is concentrated in China.
The company is also working on rare-earth materials, another category that has attracted attention because of its importance to electronics and other industrial applications.
These efforts could help manufacturers diversify their supply chains. However, developing alternative sources at a commercially useful scale requires consistent product quality, competitive costs, and dependable production capacity.
International Expansion Becomes a Priority
India currently accounts for around 90% of Scimplify’s manufacturing activity. The startup plans to expand its manufacturing network into the United States and Japan over the next year as it pursues more business in both markets.
The United States has become an important source of growth. Santhosh told TechCrunch that Scimplify’s annualized revenue run rate in the country had increased sixfold, from approximately $10 million to $60 million over the preceding year.
The U.S. now represents around 30% of the company’s business. Customers outside India collectively contribute more than half of its revenue, compared with less than 5% around 18 months earlier.
Scimplify serves more than 1,000 customers and has delivered products to over 40 countries. Its customer relationships include Japanese electronics manufacturer TDK, German chemicals group BASF, and Hitachi.
The company reported an overall annualized revenue run rate of approximately $200 million, around three times the level recorded a year earlier. It is targeting $400 million in annualized revenue run rate over the next year.
Santhosh also said Scimplify had been EBITDA-positive for the previous two months and expected to reach after-tax profitability in October 2026. These are company-reported figures and expectations, rather than independently verified financial results.
How Scimplify Plans to Use the $25 Million
The fresh capital will support the startup’s international expansion and continued development of its technology.
Scimplify plans to allocate around $7.5 million toward its U.S. expansion, including the development of its manufacturing network. Another $2 million has been earmarked for further work on Scinode. The company said these allocations could change as its plans evolve.
The startup has approximately 340 employees, including around 70 scientists. Most of its workforce is based in India, with local teams also operating in the United States, Japan, Indonesia, and the United Arab Emirates.
The investment from Hitachi Ventures and participation by customers Henkel and Teknor Apex may also help Scimplify strengthen relationships across the industrial chemicals and manufacturing ecosystem.
What Scimplify’s Growth Means for the Supply Chain
Scimplify is entering a market where access to materials is becoming a strategic concern for manufacturers. Companies in electronics, energy, and defense need dependable supplies, and many are looking for ways to reduce their exposure to concentrated global supply chains.
AI could help make chemical development and manufacturing coordination more efficient, particularly when combined with experienced scientists, qualified factories, and robust quality controls. However, software alone cannot guarantee that a material can be manufactured economically or meet the requirements of a particular industry.
Scimplify’s next challenge will be to maintain product quality and delivery timelines as it expands into more markets and handles a broader range of materials. Its planned U.S. and Japan expansion will also test whether its manufacturing-partner model can scale across different regulatory and industrial environments.
For now, the funding gives the Indian startup additional resources to pursue that goal. If it can continue growing while delivering reliable materials at competitive costs, Scimplify could become a more significant supplier for manufacturers seeking alternatives to concentrated sources of critical chemicals and materials.