Scimplify has raised $25 million to expand its work producing specialty chemicals and critical materials with help from AI. The Bengaluru-based startup plans to grow its manufacturing network in the U.S. and Japan as it serves customers in semiconductors, defense and energy.
From chemistry to commercial production
Finding a promising material is only part of the challenge for manufacturers. They also need a production process, suitable facilities and reliable quality controls before a material can be made at commercial scale. Scimplify aims to coordinate those steps and help customers bring products to market faster.
After receiving an order, the company develops chemical manufacturing processes at research facilities in Bengaluru and Hyderabad. It then transfers the process to partner factories for production. Co-founder Sachin Santhosh said some projects have moved from customer requirements to finished material in two months, compared with a typical timeline of 12 to 18 months. Project timelines vary.
Scimplify’s platform, Scinode, helps identify production routes and manufacturing facilities, and track quality and regulatory requirements. It uses specialized AI agents for research, manufacturing and quality control. The company’s scientists and engineers oversee work across a network of more than 500 manufacturing facilities.
Building alternatives in concentrated supply chains
Scimplify helps customers find alternative sources for materials whose supply is concentrated in China and a few other countries. The company is working on tungsten derivatives made from scrap and on rare earth materials, both areas where supply chains remain heavily dependent on China.
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, with the goal of attracting more customers in those markets. The latest funding includes around $7.5 million for U.S. expansion, including its manufacturing network, and $2 million for further development of Scinode.
The company works with customers including Japanese electronics manufacturer TDK, German chemicals group BASF, and Hitachi. Its new strategic funding round was led by Hitachi Ventures, with customers Henkel and Teknor Apex joining as investors. Existing backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital also participated.
Growth across markets and industries
Santhosh said Scimplify’s annualized revenue run rate has reached about $200 million, triple its level a year earlier. The company serves more than 1,000 customers and has delivered products to more than 40 countries. It is targeting a $400 million annualized revenue run rate over the next year.
The U.S. has become a significant market for the startup. Santhosh said its annualized revenue run rate there rose sixfold to about $60 million from $10 million a year ago. The U.S. now represents roughly 30% of the business, while customers outside India collectively account for more than half of revenue, compared with less than 5% about 18 months ago.
Energy, electronics and defense contribute about 45% to 50% of revenue, up from less than 15% a year ago, according to Santhosh. Scimplify employs about 340 people, including roughly 70 scientists. Most are based in India, alongside local teams in the U.S., Japan, Indonesia, and the UAE.
Funding to support the next stage
The all-equity round brings Scimplify’s total equity funding to $80 million, the company said. A person familiar with the transaction said it values the startup at $250 million after the investment, up from $150 million after a $40 million Series B round in March 2025. Scimplify declined to disclose its valuation.
The company said it has been EBITDA-positive for the past two months and expects to turn profitable after tax this month. Its expansion will test whether AI-supported process development and a broader manufacturing network can help customers add supply options for specialty chemicals and critical materials.