Scimplify raises $25M to challenge China's grip on critical materials

Bengaluru-based Scimplify has raised $25 million in an all-equity strategic round to expand its AI-powered production of specialty chemicals and critical materials, with semiconductors, defense, and energy named as key growth markets. Hitachi Ventures led the round, joined by new investors Henkel and Teknor Apex — both already Scimplify customers — alongside existing backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital. According to a person familiar with the transaction, the round values the startup at $250 million, up from $150 million after a $40 million Series B in March 2025. The latest investment brings Scimplify’s total equity funding to $80 million, the startup said, though it declined to disclose its valuation.

Founded in 2023, Scimplify helps manufacturers source specialty chemicals and critical materials — supplies often concentrated in a handful of countries including China — without the usual 12-to-18-month development cycle. Co-founder Sachin Santhosh said the company has, in some cases, gone from receiving a customer’s requirements to delivering finished material in as little as two months. Scimplify develops chemical manufacturing processes at its own research facilities in Bengaluru and Hyderabad, then transfers them to partner factories across a network of more than 500 manufacturing facilities for commercial production. Its proprietary Scinode platform coordinates that work using specialized AI agents for 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 said. “This helps us move a lot faster and remember customer context even for future references.” Customers include Japanese electronics maker TDK, Germany’s BASF, and Hitachi.

About 90% of Scimplify’s manufacturing currently happens in India, but the startup plans to expand production to the U.S. and Japan over the next year. Its U.S. annualized revenue run rate has risen sixfold to about $60 million from $10 million a year ago, and the U.S. now accounts for roughly 30% of the business; customers outside India collectively contribute more than half of revenue, up from less than 5% about 18 months ago. Scimplify’s overall annualized revenue run rate has tripled to about $200 million, and it’s targeting $400 million over the next year. The company says it has been EBITDA-positive for the past two months and expects to turn profitable after tax this month. Energy, electronics, and defense now account for about 45% to 50% of revenue, up from less than 15% a year ago. Scimplify is also working on tungsten derivatives from scrap and on rare-earth materials, both categories where global supply chains remain heavily dependent on China. Of the new funding, about $7.5 million is earmarked for U.S. expansion (though this could change) and $2 million for further development of Scinode. The startup employs about 340 people, including roughly 70 scientists, with local teams in the U.S., Japan, Indonesia, and the UAE.

Why it matters

Scimplify’s growth suggests AI-coordinated manufacturing can compress materials-development timelines enough to make non-Chinese supply chains commercially viable for semiconductor, defense, and energy manufacturers racing to diversify sourcing.