Indian startup Scimplify has raised $25 million in an all-equity strategic round to expand its AI-powered approach to producing specialty chemicals and critical materials. Hitachi Ventures led the round, with participation from customers including Henkel and Teknor Apex, alongside existing investors Accel India, Bertelsmann India Investments, Omnivore and 3one4 Capital.
Founded in 2023 and headquartered in Bengaluru, Scimplify helps manufacturers reduce their reliance on supply chains concentrated in China and a limited number of countries. The company serves more than 1,000 customers and has delivered products to more than 40 countries. Its annualized revenue run rate reached approximately $200 million, three times its level a year ago.
A Platform Coordinating Research and Production
The company relies on the Scinode platform, which uses specialized AI agents for research, manufacturing and quality control. The platform helps identify suitable production pathways, select manufacturing facilities, and track quality and regulatory compliance requirements.
After receiving a customer request, Scimplify develops chemical manufacturing processes at its research facilities in Bengaluru and Hyderabad, then transfers those processes to partner factories for commercial production. Co-founder Sachin Santhosh said some projects moved from defining requirements to delivering the final material within two months, compared with the usual 12 to 18 months, although the timeline varies depending on the nature of the project.
The company’s teams, which include approximately 340 employees, including nearly 70 scientists, oversee a network of more than 500 manufacturing facilities. Around 90% of manufacturing operations currently take place in India, but the company plans to add production networks in the United States and Japan over the next year.
U.S. Expansion and Critical Materials
Scimplify has allocated approximately $7.5 million of the funding to expand its presence in the United States, including building its manufacturing network, although it may adjust this allocation as its plans evolve. It has also earmarked $2 million for developing Scinode.
The U.S. market accounts for approximately 30% of the company’s business, after its annualized revenue run rate there increased sixfold in a year to approximately $60 million. Customers outside India now contribute more than half of its revenue, compared with less than 5% approximately 18 months ago.
The company is producing tungsten derivatives from scrap and is also developing rare-earth materials, two areas linked to supply chains heavily concentrated in China. Its customer list includes Japan’s TDK, Germany’s BASF and Hitachi.
Why Does This Matter?
The significance of the round lies not only in financing an AI company, but also in attempting to use software to narrow the gap between discovering a new material and turning it into an industrial product that can be manufactured. If Scimplify succeeds in expanding its network beyond India, it could give manufacturers alternative pathways for sourcing materials used in electronics, energy and defense.
However, the results remain tied to the company’s ability to maintain quality and compliance when transferring processes to hundreds of factories, as well as to variations in timelines from one project to another. The U.S. and Japanese expansion plans also remain prospective, while the company has not disclosed its valuation after the round; a source familiar with the deal estimated it at approximately $250 million, compared with $150 million after the Series B round in March 2025.