As companies across various sectors aim to lessen their dependence on Chinese suppliers, Indian startup Scimplify has successfully secured $25 million to enhance its AI-driven methodology for producing specialty chemicals and essential materials, particularly in the burgeoning markets of semiconductors, defense, and energy. This all-equity strategic funding round was spearheaded by Hitachi Ventures, with notable customers Henkel and Teknor Apex participating as new investors. Existing investors, including Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital, also took part in the funding. Following this investment, the Bengaluru-based startup is now valued at $250 million, a significant increase from its previous valuation of $150 million after a $40 million Series B funding round in March 2025, according to a source familiar with the deal. With this latest funding, Scimplify’s total equity financing has reached $80 million, although the startup has opted not to disclose its current valuation.
The increasing integration of AI and advanced computational tools has expedited the discovery and research of materials. Nevertheless, the transition from promising chemical innovations to commercially viable products at scale remains a lengthy and intricate endeavor. Manufacturers must establish production processes, qualify facilities, and adhere to rigorous quality standards, all while managing supply chains that are often restricted to a select few countries. Scimplify aims to streamline this process. In certain instances, the startup, which was founded in 2023, has managed to fulfill a customer’s requirements and deliver the final product in merely two months, in stark contrast to the typical 12 to 18 months required for such undertakings, as co-founder Sachin Santhosh noted in an interview.
Upon receiving an order, Scimplify formulates chemical manufacturing processes at its research facilities located in Bengaluru and Hyderabad, subsequently transferring these processes to partner factories for commercial production. Its proprietary AI platform, Scinode, facilitates this coordination by identifying appropriate production pathways and manufacturing sites while ensuring compliance with quality and regulatory standards. The platform employs specialized AI agents for various functions, including research, manufacturing, and quality control, as Santhosh explained to hinews. “Each of these agents is essentially addressing what [a customer] requires, working backward from the customer’s specifications,” Santhosh stated. “This enables us to operate much more swiftly and retain customer context for future reference.”
Scimplify’s in-house team of scientists and engineers supervises production across a network of over 500 manufacturing facilities. This oversight assists customers in establishing alternative sources for materials whose supply is predominantly concentrated in China and a few other nations. Currently, approximately 90% of Scimplify’s manufacturing occurs in India. However, the startup intends to broaden its production network to the U.S. and Japan within the next year to attract additional customers in these markets, according to Santhosh.
The U.S. has emerged as a significant growth market, with Scimplify’s annualized revenue run rate in the country increasing sixfold to approximately $60 million, up from $10 million a year ago, as reported by Santhosh. The U.S. market now constitutes roughly 30% of its business, while clients outside India collectively account for over half of its revenue, a stark rise from less than 5% just 18 months prior. Overall, Scimplify, which serves more than 1,000 customers and has delivered products to over 40 countries, has achieved an annualized revenue run rate of around $200 million, tripling from the previous year, according to Santhosh. The startup is aiming for a $400 million annualized revenue run rate within the next year.
Scimplify has also been EBITDA-positive for the past two months and anticipates achieving profitability after tax this month, Santhosh mentioned. Currently, energy, electronics, and defense sectors contribute approximately 45% to 50% of Scimplify’s revenue, a significant increase from less than 15% a year ago, as stated by Santhosh. This growth is fueled by the rising demand for materials utilized in electronics and energy infrastructure, alongside ongoing conflicts that are driving demand from the defense sector. Scimplify is also engaged in producing tungsten derivatives from scrap, providing customers with an alternative source of materials that are heavily reliant on Chinese supply. Additionally, the startup is focused on rare earth materials, another category where global supply chains remain significantly dependent on China. Scimplify collaborates with clients such as Japanese electronics manufacturer TDK, German chemicals group BASF, and Hitachi.
Santhosh highlighted a project involving TDK as an illustration of how the startup can significantly reduce the time required to develop and deliver specialty materials. He noted that timelines can vary based on the specifics of each project. With the recent funding, Scimplify plans to allocate approximately $7.5 million towards its expansion in the U.S., which includes enhancing its manufacturing network, as stated by Santhosh. An additional $2 million has been designated for further development of the Scinode platform. The startup currently employs around 340 individuals, including approximately 70 scientists. While the majority of its workforce is based in India, it also maintains local teams in the U.S., Japan, Indonesia, and the UAE.
