Scimplify Raises $25M to Challenge China's Grip on Critical Materials with AI Platform

Scimplify Secures $25M to Expand AI-Driven Specialty Chemical Manufacturing

Bengaluru-based startup Scimplify has raised $25 million in an all-equity strategic round led by Hitachi Ventures, with participation from new investors Henkel and Teknor Apex, alongside existing backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital1

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. The Scimplify funding values the company at $250 million post-investment, up from $150 million after its $40 million Series B round in March 2025, bringing total equity funding to $80 million1

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. Founded in 2023 by Sachin Santhosh, Salil Srivastava, Dheeraj Dhingra and Hersh Manek, Scimplify operates as a B2B platform specializing in end-to-end sourcing and specialty chemical manufacturing for semiconductors, defense, and energy sectors2

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Challenge China's Grip on Critical Materials Through Accelerated Production

Manufacturers worldwide are working to diversify supply chains concentrated in China, particularly for critical materials essential to electronics, defense, and energy infrastructure. Scimplify addresses this challenge by dramatically compressing production timelines—delivering finished materials in just two months compared to the typical 12 to 18 months required by traditional methods1

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. The startup develops chemical manufacturing processes at research facilities in Bengaluru and Hyderabad before transferring them to partner factories for commercial production. About 90% of Scimplify's manufacturing currently occurs in India through a network of more than 500 manufacturing facilities, with plans to expand production to the US and Japan over the next year1

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Agentic AI Platform Scinode Coordinates Complex Manufacturing Operations

Scimplify's proprietary AI platform, Scinode, serves as the backbone of its accelerated production capabilities by coordinating research, process development, quality control, and physical manufacturing. The agentic AI platform uses specialized AI agents for different functions, each working backward from customer requirements to identify suitable production routes, manufacturing facilities, and track quality and regulatory compliance1

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. "Each of these agents is basically solving for what [a customer] would want, working backward from the customer's requirement," co-founder Sachin Santhosh explained. "This helps us move a lot faster and remember customer context even for future references"1

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. The startup has earmarked $2 million from the fresh capital to further develop Scinode's capabilities1

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Semiconductor Chemicals Business and Rare Earth Materials Drive Revenue Growth

Scimplify has achieved significant traction in high-growth sectors, with energy, electronics, and defense now accounting for 45% to 50% of revenue, up from less than 15% a year ago1

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. The startup's semiconductor chemicals business is expanding rapidly as AI fuels demand for materials used in electronics infrastructure. The company is actively working on producing tungsten derivatives from scrap and developing rare earth materials processing capabilities—both categories where global supply chains remain heavily dependent on China1

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. The fresh capital will scale operations in semiconductor chemicals and battery chemicals, along with expanding research, processing, and manufacturing capabilities across rare earth and critical metals purification2

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US Expansion Accelerates as International Revenue Surges

The US has emerged as a critical growth market for Scimplify, with annualized revenue run rate rising sixfold to approximately $60 million from $10 million a year ago, now representing roughly 30% of total business1

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. Customers outside India collectively contribute more than half of revenue, compared with less than 5% about 18 months ago1

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. Overall, the startup serves more than 1,000 customers across over 40 countries, with an annualized revenue run rate of approximately $200 million—triple the figure from a year earlier1

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. Scimplify is targeting a $400 million annualized revenue run rate over the next year and has been EBITDA-positive for the past two months, expecting to turn profitable after tax this month1

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. The startup plans to deploy around $7.5 million for US expansion, including building out its manufacturing network, initially focusing on sectors where domestic processing capabilities remain limited such as rare earth and critical metals purification1

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. Customers include Henkel, TDK, BASF, Hitachi, Coromandel, Dr Reddy's, Coherent, Holcim, Sanyo, and Marubeni1

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