Scimplify raises $25M in an all-equity strategic round to expand its AI-powered production of specialty chemicals and critical materials. The Bengaluru-based startup is targeting semiconductors, defense, and energy as key growth markets while manufacturers worldwide seek to reduce reliance on Chinese suppliers.
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 investment values Scimplify at $250 million after the round, according to a person familiar with the transaction, up from $150 million following a $40 million Series B in March 2025. Total equity funding now stands at $80 million, the startup said, though it declined to disclose its valuation officially.
Why Scimplify raises $25M Matters for Global Supply Chains
Manufacturers across industries are striving to reduce their reliance on Chinese suppliers. Scimplify’s approach targets a critical bottleneck: turning promising chemistry into commercially available products at scale.
AI and advanced computational tools have accelerated materials discovery and research. However, moving from lab breakthrough to commercial production remains slow and complex. Companies must develop production processes, qualify facilities, and meet stringent quality standards, all while navigating supply chains limited to a handful of countries. Scimplify seeks to shorten that process.
In some cases, the startup has gone from receiving a customer’s requirements to delivering finished material in just two months, compared with the 12 to 18 months such work would typically take, co-founder Sachin Santhosh said.
How Scimplify’s AI Platform Scinode Works
Once it receives an order, 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, 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.
“Each of these agents is basically solving for what [a customer] would want, working backward from the customer’s requirement,” Santhosh said. “This helps us move a lot faster and remember customer context even for future references.”
Scimplify’s in-house team of scientists and engineers oversees production across a network of more than 500 manufacturing facilities. It helps customers establish alternative sources for materials whose supply is concentrated in China and a few other countries.
Manufacturing Footprint and Global Expansion Plans
About 90% of Scimplify’s manufacturing currently takes place in India. The startup 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. Scimplify’s annualized revenue run rate in the country rose sixfold to about $60 million from $10 million a year ago. 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.
Overall, Scimplify serves more than 1,000 customers and has delivered products to more than 40 countries. The company has reached an annualized revenue run rate of about $200 million, tripling from a year earlier. It is targeting a $400 million annualized revenue run rate over the next year.
Scimplify has also been EBITDA-positive for the past two months and expects to turn profitable after tax this month, Santhosh said.
Key Markets Driving Growth
Energy, electronics, and defense now account for about 45% to 50% of Scimplify’s revenue, up from less than 15% a year ago. The growth comes as AI fuels demand for materials used in electronics and energy infrastructure, while ongoing wars drive demand from the defense industry.
Scimplify is working on producing tungsten derivatives from scrap, offering customers an alternative source of materials whose supply is heavily concentrated in China. The startup is also working on rare-earth materials, another category where global supply chains remain heavily dependent on China.
The company works with customers including Japanese electronics manufacturer TDK, German chemicals group BASF, and Hitachi. Santhosh cited a project involving TDK as an example of how the startup can shorten the time needed to develop and deliver specialty materials. Timelines vary depending on the project, he said.
How the Funding Will Be Deployed
With the new capital, Scimplify plans to deploy around $7.5 million for its U.S. expansion, including building out its manufacturing network. Santhosh noted the allocation could change as the startup’s plans evolve. Another $2 million is earmarked for further development of Scinode.
The startup employs about 340 people, including roughly 70 scientists. Most of its workforce is based in India, though it also has local teams in the U.S., Japan, Indonesia, and the UAE.
Founded in 2023, Scimplify is betting that AI-driven process development and a distributed manufacturing network can loosen China’s grip on critical materials. The company’s rapid revenue growth and expanding customer base suggest that bet is gaining traction.
