Scimplify Raises $25M to Expand AI-Powered Chemical Production

Indian startup Scimplify has raised $25 million to expand AI-powered production of specialty chemicals and critical materials as manufacturers seek to reduce reliance on Chinese suppliers. Semiconductors, defense and energy are emerging as key growth markets. Hitachi Ventures led the all-equity strategic round, with customers Henkel and Teknor Apex joining as new investors. Existing investors Accel India, Bertelsmann India Investments, Omnivore and 3one4 Capital also participated.

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

AI and advanced computational tools have accelerated materials discovery and research. However, commercial production at scale remains slow and complex because manufacturers must develop processes, qualify facilities and meet stringent quality standards within geographically concentrated supply chains. Co-founder Sachin Santhosh said Scimplify, founded in 2023, has sometimes delivered finished materials within two months of receiving customer requirements, versus a typical 12 to 18 months.

Scimplify develops chemical manufacturing processes at research facilities in Bengaluru and Hyderabad after receiving orders, then transfers the processes to partner factories for commercial production. Scimplify's proprietary AI platform, Scinode, identifies suitable production routes and manufacturing facilities while tracking quality and regulatory requirements. Santhosh said Scinode uses specialized AI agents for research, manufacturing and quality control. Santhosh said the agents work backward from customer requirements, helping Scimplify move faster and retain customer context for future work. Scimplify's scientists and engineers oversee production across more than 500 manufacturing facilities. Scimplify helps customers establish alternative sources for materials whose supply is concentrated in China and a few other countries.

About 90% of Scimplify's manufacturing currently takes place in India. However, Santhosh said Scimplify plans to expand its production network to the U.S. and Japan over the next year to attract more customers in both markets. Santhosh said Scimplify's U.S. annualized revenue run rate rose sixfold to about $60 million from $10 million a year ago. The U.S. now accounts for roughly 30% of Scimplify's business. Customers outside India collectively contribute more than half of revenue, compared with less than 5% about 18 months ago.

Santhosh said Scimplify has reached an overall annualized revenue run rate of about $200 million, tripling from a year earlier. Scimplify serves more than 1,000 customers and has delivered products to more than 40 countries. Scimplify targets a $400 million annualized revenue run rate over the next year. Santhosh said Scimplify has been positive on earnings before interest, taxes, depreciation and amortization for the past two months. Santhosh said Scimplify expects to become profitable after tax this month.

Santhosh said energy, electronics and defense now account for about 45% to 50% of revenue, up from less than 15% a year ago. AI is driving demand for electronics and energy infrastructure materials, while ongoing wars are driving defense industry demand. Scimplify is working to produce tungsten derivatives from scrap as an alternative source for materials whose supply is heavily concentrated in China. Scimplify is also working on rare earth materials, another category with supply chains heavily dependent on China. Scimplify's customers include Japan's electronics manufacturer TDK, Germany's chemicals group BASF and Hitachi. Santhosh cited a TDK project as an example of faster specialty-material development and delivery, but said timelines vary by project.

Santhosh said Scimplify plans to use around $7.5 million of the latest funding for U.S. expansion, including development of its manufacturing network. Scimplify earmarked another $2 million for further development of Scinode. Scimplify employs about 340 people, including roughly 70 scientists. Most employees are based in India, with local teams also in the U.S., Japan, Indonesia and the United Arab Emirates.