Scimplify Raises $25M to Expand AI-Driven Critical Materials Production

Indian speciality chemicals startup Scimplify has raised $25 million to expand its AI-assisted manufacturing platform and develop alternative supplies of critical materials used in semiconductors, energy infrastructure and defence. The Bengaluru-based company is targeting customers seeking to reduce their dependence onChina-concentrated supply chains.

Hitachi Ventures led the all-equity funding round, with customers Henkel and Teknor Apex joining as new investors. Existing backers Accel India, Bertelsmann India Investments, Omnivore and 3one4 Capital also participated, bringing Scimplify’s total equity funding to $80 million.

Founded in 2023, Scimplify combines chemical research, AI software and a network of manufacturing partners to help companies move specialised materials from development to commercial production. Its approach addresses a persistent manufacturing challenge: developing a chemical formulation is often faster than building a reliable, qualified supply chain that can produce it at scale.

How Scimplify Uses AI to Accelerate Chemical Manufacturing

Scimplify develops manufacturing processes at research facilities in Bengaluru and Hyderabad, then transfers them to partner factories for commercial production. Its proprietary AI platform, Scinode, coordinates the process by identifying production methods, matching projects with suitable facilities and tracking quality and regulatory requirements.

The platform uses specialised AI agents for research, manufacturing, and quality control. Co-founder Sachin Santhosh said the system works backwards from customer requirements, helping teams retain project information and accelerate subsequent development.

In some projects, Scimplify has delivered finished materials within two months of receiving customer specifications, compared with the 12 to 18 months typically required for similar work, according to Santhosh. He acknowledged that timelines vary by material and manufacturing requirements.

The company employs approximately 340 people, including about 70 scientists, and oversees production through more than 500 manufacturing facilities. Around 90% of its current manufacturing takes place in India, although it plans to expand its network into the United States and Japan over the next year.

U.S. Growth Drives Scimplify’s Expansion

Scimplify’s U.S. business has grown sharply, with its annualised revenue run rate increasing sixfold to approximately $60 million from $10 million a year earlier, Santhosh said. The United States now represents about 30% of the company’s business.

International customers collectively account for more than half of Scimplify’s revenue, up from less than 5% about 18 months ago. The company serves more than 1,000 customers and has delivered materials to over 40 countries.

Scimplify’s annualised revenue run rate has reached about $200 million, three times its level a year earlier, according to Santhosh. The startup is targeting a $400 million run rate over the next year and reported being EBITDA-positive for the previous two months, although it has not yet established sustained profitability.

Critical Materials Become a Growing Business

Energy, electronics, and defence now account for about 45% to 50% ofScimplify’ss revenue, up from less than 15% a year earlier. The shift reflects increased customer demand for specialised materials used in semiconductor manufacturing, energy systems and defence applications.

One focus is producing tungsten derivatives from industrial scrap, offering an alternative to supplies concentrated in China. Scimplify is also developing capabilities in rare-earth materials, another category where production and processing capacity is geographically concentrated.

Its customers include Japanese electronics manufacturer TDK, German chemicals company BASF and Hitachi. Santhosh cited work with TDK as an example of the company’s ability to reduce the time between material development and commercial delivery.

New Funding Supports U.S. Manufacturing and Science

Scimplify plans to allocate about $7.5 million from the latest funding to its U.S. expansion, including developing additional manufacturing partnerships. The company also earmarked another $2 million to improve Scinode, though it said investment allocations could change.

Most employees remain based in India, with smaller local teams operating in the United States, Japan, Indonesia and the United Arab Emirates. Expanding its international production network is central to Scimplify’s effort to supply specialised materials closer to customers while maintaining its AI-supported development and manufacturing model.