Scimplify Raises $25M to Challenge China's Dominance in Critical Materials With AI
Scimplify's Annual Revenue Run Rate Triples to $200M Driven by U.S. Expansion
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As manufacturers across industries struggle to reduce their reliance on Chinese suppliers, Indian startup Scimplify has raised $25 million to develop its AI-based approach to manufacturing specialty chemicals and critical materials, with semiconductors, defense and energy emerging as key growth markets.
The strategic all-equity round was led by Hitachi Ventures, with clients Henkel and Teknor Apex joining as new investors. Existing backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital also participated. The round values the Bangalore-based startup at $250 million after the investment, up from $150 million after a $40 million Series B round in March 2025, according to a person familiar with the transaction. The latest investment brings Scimplify's total equity capital to $80 million, the startup said, though it declined to disclose the value.
The growing adoption of artificial intelligence and advanced computing tools has accelerated materials discovery and research. However, converting promising chemistry into commercial products at scale is a slow and complex process. Manufacturers must develop manufacturing processes, qualify facilities and meet strict quality standards, all while the supply chain is limited to a handful of countries. Scimplify seeks to shorten this process.
In some cases, the startup, founded in 2023, has gone from receiving customer requirements to delivering finished materials in just two months, compared to 12 to 18 months, co-founder Sachin Santosh (pictured above) said in an interview.
After receiving an order, Scimplify develops chemical manufacturing processes at its research facilities in Bangalore and Hyderabad and then transports them to partner factories for commercial production. Its proprietary AI platform, Scinode, helps coordinate work by identifying appropriate production routes and production facilities while tracking quality and regulatory requirements. The platform uses specialized AI agents for various functions, including research, production and quality control, Santhosh told TechCrunch.
"Each of these agents is basically solving what [the customer] wants, and working towards what the customer needs," Santosh said. "It helps us move much faster and remember the customer's context even for future reference."
Scimplify's in-house team of scientists and engineers oversee production at a network of more than 500 manufacturing facilities. This helps customers create alternative sources for materials whose supply is concentrated in China and a few other countries.
About 90% of Scimplify's manufacturing is currently done in India. However, the startup plans to expand its manufacturing network to the US and Japan over the next year as it seeks to attract more customers in both markets, Santhosh said.
According to Santosh, the US has emerged as a key growth market, with Simplify's annual revenue rate in the country growing sixfold to about $60 million from $10 million last year. The market now accounts for roughly 30 percent of its business, while customers outside India collectively account for more than half of its revenue, up from less than 5 percent about 18 months ago.
In total, Scimplify, which serves more than 1,000 customers and has delivered products to more than 40 countries, has reached an annual revenue rate of about $200 million, tripling from the previous year, Santhosh told TechCrunch. This startup has targeted an annual revenue rate of 400 million dollars in the next year. Scimplify has also been EBITDA positive for the past two months and is expected to be profitable after tax this month, he said.
Energy, electronics and defense now account for about 45 to 50 percent of Scimplify's revenue, up from less than 15 percent last year, Santosh said. This growth comes as artificial intelligence increases demand for materials used in electronics and energy infrastructure, while ongoing wars increase demand from the defense industry.
Scimplify works on the production of tungsten derivatives from waste, providing customers with an alternative source of material whose supply is heavily concentrated in China. The startup also works on rare earths, a category where global supply chains are heavily dependent on China.
The startup works with clients including Japanese electronics maker TDK, German chemicals group BASF and Hitachi. Santhosh cited a project involving TDK as an example of how startups can shorten the time needed to develop and deliver specialized materials. Timing varies by project, he said.
With its latest funding, Scimplify plans to allocate about $7.5 million to its US expansion, including building out its manufacturing network, Santhosh said. It also earmarked another $2 million for further development of Scinode.
This startup employs about 340 people, including 70 scientists. Most of its workforce is based in India, although it also has local teams in the US, Japan, Indonesia and the UAE.
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Jagmeet covers startups, tech policy updates and other important tech-centric developments from India for TechCrunch. He was earlier working as a Chief Correspondent at NDTV.
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