Scimplify raises $25M to expand AI-driven critical materials production

Indian startup Scimplify has raised $25 million in an all-equity strategic round to expand its AI-powered production of specialty chemicals and critical materials, with semiconductors, defense and energy emerging as key growth markets.

Funding and valuation

The 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 deal values the Bengaluru-based startup at $250 million after the investment, up from $150 million following a $40 million Series B round in March 2025, according to a person familiar with the transaction. Scimplify said the latest investment brings its total equity funding to $80 million, though it declined to disclose its valuation.

AI platform shortens development timelines

Founded in 2023, Scimplify develops chemical manufacturing processes at its research facilities in Bengaluru and Hyderabad, then transfers them to partner factories for commercial production. Its proprietary AI platform, Scinode, identifies suitable production routes and manufacturing facilities while tracking quality and regulatory requirements. The platform uses specialized AI agents for research, manufacturing and quality control, co-founder Sachin Santhosh told TechCrunch. In some cases, the startup has gone from receiving a customer's requirements to delivering the finished material in two months, compared with the 12 to 18 months such work typically takes.

Growth and expansion plans

Scimplify oversees production across a network of more than 500 manufacturing facilities, with about 90% of manufacturing currently taking place in India. The startup plans to expand its production network to the U.S. and Japan over the next year. Its U.S. annualized revenue run rate has risen sixfold to about $60 million from $10 million a year ago, and the market now accounts for roughly 30% of its business. Overall, the startup 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. It 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. Scimplify is working on producing tungsten derivatives from scrap and on rare earth materials, both categories where global supply chains remain heavily dependent on China. Customers include TDK, BASF and Hitachi, and the startup serves more than 1,000 customers with deliveries to over 40 countries. With the new funding, Scimplify plans to deploy around $7.5 million for its U.S. expansion and $2 million for further development of Scinode. The company employs about 340 people, including roughly 70 scientists.

Sources: Techcrunch Ai