Scimplify Raises $25M to Challenge China’s Grip on Critical Materials

Indian startup Scimplify has raised $25 million to expand its AI-powered specialty chemicals business, aiming to help manufacturers reduce their dependence on China for critical materials. The Bengaluru-based company is targeting growing demand from the semiconductor, defense, energy, and electronics industries as businesses look for more reliable supply chains.

The all-equity strategic funding round was led by Hitachi Ventures, with existing customers Henkel and Teknor Apex joining as new investors. Existing investors Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital also participated.

According to a person familiar with the deal, the investment values Scimplify at $250 million, up from $150 million following its $40 million Series B round in March 2025. The company has now raised $80 million in total equity funding, although it declined to disclose its latest valuation.

Founded in 2023, Scimplify is tackling a major challenge in materials manufacturing: turning promising scientific discoveries into products that can be manufactured at commercial scale. While artificial intelligence and advanced computational tools are speeding up materials research, establishing production processes, qualifying factories, and meeting strict quality standards can still take months or years.

Scimplify wants to make that process faster.

AI Helps Cut Materials Development Time

The startup says it has delivered finished materials in as little as two months after receiving customer requirements. Comparable projects would typically take 12 to 18 months, according to co-founder Sachin Santhosh.

Scimplify develops chemical manufacturing processes at its research facilities in Bengaluru and Hyderabad before transferring them to partner factories for large-scale production. Its proprietary AI platform, Scinode, coordinates this process by identifying suitable production methods and manufacturing facilities while tracking quality standards and regulatory requirements.

The platform uses specialized AI agents for different tasks, including research, manufacturing, and quality control.

“Each of these agents is basically solving for what [a customer] would want, working backward from the customer’s requirement,” Santhosh told TechCrunch. He added that the system helps the company work faster and retain customer context for future projects.

Scimplify’s scientists and engineers oversee production across a network of more than 500 manufacturing facilities. Through this model, the company helps manufacturers find alternative suppliers for materials whose production is concentrated in China and a limited number of other countries.

U.S. Expansion Becomes a Major Priority

India currently accounts for approximately 90% of Scimplify’s manufacturing. However, the company plans to expand its production network into the United States and Japan over the next year to serve customers in both markets more effectively.

The U.S. has become a particularly important growth market. According to Santhosh, Scimplify’s annualized revenue run rate in the country has increased sixfold, reaching approximately $60 million from $10 million a year earlier.

The U.S. now represents around 30% of the company’s business. Meanwhile, customers outside India collectively contribute more than half of its revenue, compared with less than 5% approximately 18 months ago.

Across its business, Scimplify serves more than 1,000 customers and has delivered products to over 40 countries. Its overall annualized revenue run rate has reached approximately $200 million, tripling from a year earlier.

The company aims to reach a $400 million annualized revenue run rate over the next year. Santhosh also said Scimplify had been EBITDA-positive for the previous two months and expected to become profitable after tax in October 2026.

Critical Materials Drive New Demand

Energy, electronics, and defense now generate approximately 45% to 50% of Scimplify’s revenue, compared with less than 15% a year earlier.

The shift reflects rising demand for materials used in electronics and energy infrastructure as AI adoption expands. At the same time, ongoing wars are contributing to increased demand from the defense industry.

Scimplify is also working on producing tungsten derivatives from scrap, potentially giving customers another source of a material whose supply is heavily concentrated in China. The company is developing rare earth materials as well, another category where global supply chains remain highly dependent on Chinese production.

Its customers include Japanese electronics manufacturer TDK, German chemicals group BASF, and Hitachi. Santhosh pointed to a project involving TDK as an example of how Scimplify can reduce the time required to develop and deliver specialty materials, although he noted that timelines differ from project to project.

How Scimplify Plans to Use the New Funding

The company plans to allocate approximately $7.5 million from the latest round to its U.S. expansion, including the development of its manufacturing network. Another $2 million is earmarked for further development of Scinode, its AI-powered platform.

Scimplify currently employs around 340 people, including approximately 70 scientists. Most employees are based in India, with additional local teams in the United States, Japan, Indonesia, and the United Arab Emirates.

As manufacturers seek alternatives to concentrated supply chains, Scimplify is betting that combining AI-driven coordination with a distributed manufacturing network can make specialty chemical production faster and more resilient. Its next challenge will be to expand into new markets while maintaining the quality, regulatory compliance, and production reliability that industrial customers require.
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