Scimplify Raises $25M to Build AI-Driven Supply Chain for Critical Materials Outside China

Bengaluru-based Scimplify has secured $25 million in strategic funding to scale its AI-driven approach to producing specialty chemicals and critical materials, as manufacturers across industries seek to reduce reliance on Chinese suppliers. The all-equity round was led by Hitachi Ventures, with customers 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 startup at $250 million post-investment, according to a person familiar with the transaction, up from $150 million after a $40 million Series B in March 2025. Scimplify declined to confirm the valuation, but data platform Tracxn listed a post-money valuation of $249 million as of July, according to a separate report. Total equity funding now stands at $80 million.

AI Platform and Speed

Scimplify, founded in 2023, uses a proprietary AI platform called Scinode to coordinate chemical manufacturing from research to commercial production. The platform deploys specialized AI agents for research, manufacturing, and quality control, co-founder Sachin Santhosh told TechCrunch. “Each of these agents is basically solving for what [a customer] would want, working backward from the customer’s requirement,” Santhosh said. “This helps us move a lot faster and remember customer context even for future references.”

The startup claims it can go from receiving a customer’s requirements to delivering finished material in as little as two months, compared with the typical 12 to 18 months. Scimplify develops chemical processes at its research facilities in Bengaluru and Hyderabad, then transfers them to partner factories for commercial production. It operates a network of more than 500 manufacturing facilities, with about 90% of production currently in India.

Revenue Growth and Market Shift

Scimplify has reached an annualized revenue run rate of about $200 million, tripling from a year earlier, Santhosh told TechCrunch. The U.S. market has been a key driver, with its annualized run rate rising sixfold to about $60 million from $10 million a year ago. International markets now contribute more than half of the company’s revenue, up from less than 5% 18 months ago, according to Santhosh.

Energy, electronics, and defense now account for 45% to 50% of revenue, up from less than 15% a year ago, driven by AI-fueled demand for materials used in electronics and energy infrastructure, as well as ongoing wars boosting defense demand. Scimplify serves more than 1,000 customers across 40 countries, including Japanese electronics manufacturer TDK, German chemicals group BASF, and Hitachi.

The company has been EBITDA-positive for the past two months and expects to turn profitable after tax this month, Santhosh said. It is targeting a $400 million annualized revenue run rate over the next year.

Geopolitical Context and Expansion Plans

Scimplify is focusing on materials whose supply chains are heavily concentrated in China. It is working on producing tungsten derivatives from scrap and rare-earth materials, categories where China dominates global supply. The European Union’s Critical Raw Materials Act, which caps any single non-EU supplier at 65% by 2030, lists tungsten and magnet rare earths as strategic raw materials, as reported by The Next Web. China has also slowed export licenses for indium phosphide since early 2025, driving the price of a six-inch wafer from $1,400 to about $5,000, according to the same report.

The startup plans to use $7.5 million of the new funding for U.S. expansion, including building out its manufacturing network, Santhosh said. It also earmarked $2 million for further development of Scinode. Over the next year, Scimplify aims to extend its production network to the U.S. and Japan, with a focus on rare earth and critical metals processing, as well as high-purity semiconductor and battery chemicals, through new processing facilities and partnerships with American manufacturers.

Radhika Ananth, managing director of India at Hitachi Ventures, said in a statement, as reported by LiveMint: “Specialty chemicals demand has outgrown the models built to serve it. India has the manufacturing capacity, but much of it sits underused, without the science and quality systems global customers require. We believe Scimplify is building the platform that closes this gap.”

Rachit Parekh, partner at Accel, added: “In the 18 months since our initial investment, Scimplify has grown from serving 600+ customers across 16 countries to building a global platform with 1,000+ customers across 40+ countries.”

Scimplify employs about 340 people, including roughly 70 scientists. Most of its workforce is based in India, with local teams in the U.S., Japan, Indonesia, and the UAE. The company expects international markets to grow to 70% of revenue by the end of next year, up from 50% currently.