Scimplify raises $25M to challenge China’s grip on critical materials with AI

Key points

• Scimplify raised $25 million to expand its AI-powered specialty chemicals and critical materials production.
• The round was led by Hitachi Ventures, with Henkel and Teknor Apex joining as new investors.
• Scimplify's annualized revenue run rate reached about $200 million, tripling from a year earlier.

Indian startup Scimplify has raised $25 million to expand its AI-powered production of specialty chemicals and critical materials, targeting semiconductors, defense, and energy as key growth markets. The all-equity strategic round was led by Hitachi Ventures, with customers Henkel and Teknor Apex joining as new investors, alongside existing backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital.

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

How the platform works

Founded in 2023, Scimplify develops chemical manufacturing processes at its research facilities in Bengaluru and Hyderabad and 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.

Co-founder Sachin Santhosh said in some cases the startup has gone from receiving a customer's requirements to delivering the finished material in just two months, compared with the 12 to 18 months such work would typically take. Scimplify's in-house team of scientists and engineers oversees production across a network of more than 500 manufacturing facilities, with about 90% of its manufacturing currently taking place in India.

Each of these agents is basically solving for what [a customer] would want, working backward from the customer's requirement

— Sachin Santhosh

Growth and expansion plans

Scimplify's annualized revenue run rate in the U.S. rose sixfold to about $60 million from $10 million a year ago, according to Santhosh, with the market now accounting 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.

The startup plans to expand its production network to the U.S. and Japan over the next year. With the latest funding, Scimplify plans to deploy around $7.5 million for its U.S. expansion and another $2 million for further development of Scinode. Scimplify employs about 340 people, including roughly 70 scientists.