As manufacturers across industries strive to reduce their reliance on Chinese suppliers, Indian startup Scimplify has raised $25 million to expand its AI-powered approach to producing specialty chemicals and critical materials, with semiconductors, defense and energy emerging as key growth markets. The all-equity strategic round was led by Hitachi Ventures, with customers Henkel and Teknor Apex joining as new investors. Existing backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital also participated.
The round values the Bengaluru-based startup at $250 million after the investment, according to a person familiar with the transaction, up from $150 million after a $40 million Series B round in March 2025. The latest investment brings Scimplify’s total equity funding to $80 million, the startup said, though it declined to disclose its valuation. The growing adoption of AI and advanced computational tools has accelerated materials discovery and research.
However, turning promising chemistry into commercially available products at scale remains a slow and complex process. Manufacturers need to develop production processes, qualify facilities, and meet stringent quality standards, all while navigating supply chains limited to a handful of countries. Scimplify is seeking to shorten that process.
In some cases, the startup, founded in 2023, has gone from receiving a customer’s requirements to delivering the finished material in just two months, compared with the 12 to 18 months such work would typically take, co-founder Sachin Santhosh (pictured above) said in an interview. Once it receives an order, Scimplify develops chemical manufacturing processes at its research facilities in Bengaluru and Hyderabad and then transfers them to partner factories for commercial production. Its proprietary AI platform, Scinode, helps coordinate the work by identifying suitable production routes and manufacturing facilities, while tracking quality and regulatory requirements.
The platform uses specialized AI agents for different functions, including research, manufacturing and quality control, Santhosh told TechCrunch. It helps customers establish alternative sources for materials whose supply is concentrated in China and a few other countries. About 90% of Scimplify’s manufacturing currently takes place in India.
The startup, however, plans to expand its production network to the U.S. and Japan over the next year as it seeks to attract more customers in both markets, Santhosh said. The U.S. has emerged as a key growth market, with Simplify’s annualized revenue run rate in the country rising sixfold to about $60 million from $10 million a year ago, according to Santhosh. The market now accounts for roughly 30% of its business, while customers outside India collectively contribute more than half of its revenue, compared with less than 5% about 18 months ago.
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