As manufacturers across various industries strive to reduce their reliance on Chinese suppliers, Indian startup Scimplify has raised $25 million to expand its AI-driven production of specialty chemicals and critical materials, with semiconductors, defense, and energy emerging as key growth markets.
This round of full-equity strategic funding was led by Hitachi Ventures, with new investors Henkel and Teknor Apex joining. Existing investors Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital also participated in this round. According to a person familiar with the matter, the Bangalore-based startup’s post-funding valuation stands at $250 million, up from $150 million after its $40 million Series B round completed in March 2025. Scimplify stated that this latest investment brings its total equity funding to $80 million but declined to disclose its valuation.
The widespread adoption of AI and advanced computational tools has accelerated the process of material discovery and research. However, transforming promising chemical findings into scalable commercial products remains a slow and complex process. Manufacturers must develop production processes, certify facilities, meet stringent quality standards, and navigate supply chains concentrated in just a few countries. Scimplify is working to shorten this process.
Co-founder Sachin Santhosh said in an interview that, in some cases, the startup, founded in 2023, delivered finished materials to clients within just two months of receiving their requirements—a process that typically takes 12 to 18 months.
Once an order is received, Scimplify first develops the chemical manufacturing process at its R&D facilities in Bangalore and Hyderabad, then transfers it to partner factories for commercial production. Its proprietary AI platform, Scinode, coordinates these efforts by identifying suitable production routes and manufacturing facilities, while tracking quality and regulatory requirements. Santhosh told TechCrunch that the platform uses dedicated AI agents for different functions, including R&D, manufacturing, and quality control.
Santhosh said, “These agents essentially work backward from customer needs to solve for what the customer wants. This helps us move much faster and retain customer context for future reference.”
Scimplify’s internal team of scientists and engineers oversees production across a network of more than 500 manufacturing facilities. The company helps clients establish alternative sources for materials that are currently concentrated in China and a few other countries.
Currently, about 90% of Scimplify’s manufacturing operations are conducted in India. However, Santhosh stated that the company plans to expand its production network to the United States and Japan over the next year to attract more customers in these markets.
Santhosh said the U.S. has become a key growth market, with Scimplify’s annualized revenue run rate in the U.S. increasing sixfold from $10 million a year ago to approximately $60 million. Today, the U.S. market accounts for about 30% of its business, and customers outside India collectively contribute more than half of the company’s revenue—up from less than 5% about 18 months ago.
Santhosh told TechCrunch that, overall, Scimplify serves over 1,000 customers, with its product delivered to more than 40 countries, and its annualized revenue run rate has reached approximately $200 million, a threefold increase from a year ago. The company aims to raise its annualized revenue run rate to $400 million within the next year. Santhosh also noted that Scimplify has been EBITDA-positive for the past two months and expects to achieve post-tax profitability this month.
Santhosh said that energy, electronics, and defense currently account for approximately 45% to 50% of Scimplify’s revenue, up from less than 15% a year ago. This growth stems from increased demand for materials driven by AI in electronics and energy infrastructure, as well as rising defense needs due to ongoing conflicts.
Scimplify is developing tungsten derivatives from waste materials, providing customers with an alternative source to replace materials whose supply is highly concentrated in China. The company is also advancing research into rare earth materials, a category whose global supply chain remains heavily dependent on China.
The company’s partner clients include Japanese electronics manufacturer TDK, German chemical group BASF, and Hitachi. Santhosh cited a project with TDK as an example of how the company reduces the development and delivery time for specialty materials, noting that the specific timeline varies by project.
Simplify currently has approximately 340 employees, including about 70 scientists. The majority of the company’s employees are based in India, with local teams also operating in the United States, Japan, Indonesia, and the UAE.