New Delhi: Scimplify, a startup that helps companies develop and manufacture speciality chemicals, has raised $25 million in a funding round led by Hitachi Ventures, underscoring growing investor involvement in India’s manufacturing sector.
The Bengaluru-based company said the round drew strategic investors including Teknor Apex, Henkel and a Japanese chemical company, alongside existing backers Accel, 3one4 Capital, Bertelsmann India Investments and Omnivore. With the latest raise, Scimplify has secured about $80 million in funding.
The fresh capital will be used to expand its research laboratories, deepen its presence in US and Europe, and strengthen SciNode, the company’s in-house artificial intelligence (AI) platform that supports managing the journey from chemical discovery to large-scale production.
The fundraising comes as companies look to diversify their supply chains and demand for materials used in batteries, semiconductors and other high-tech industries rises. Overseas markets now contribute about half of Scimplify’s revenue, and the company expects that share to grow further over the coming year.
“The investors are strategic investors who are also our customers. These include Hitachi, Teknor Apex, and Henkel. We will also announce a Japanese company as an investor soon,” Scimplify co-founder Sachin Santhosh told Mint.
The investment comes at a time when, driven by policy push and the current geopolitical scenario, the country’s manufacturing ecosystem is seeing increased investment. India’s manufacturing startups have seen a surge in investor interest, with funding jumping from $164 million in 2020 when the pandemic arrived to $1.92 billion in 2026, according to data platform Venture Intelligence.
Growth areas
The company said it is seeing increased traction across the energy and electronics supply chains, particularly in batteries and semiconductors, driven by the AI boom. Aerospace and defence, along with chemicals used in consumer products, are also emerging as key growth areas.
Radhika Ananth, managing director of India at Hitachi Ventures, said in a statement, “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.”
Founded in 2023 by Sachin Santhosh, Salil Srivastava, Dheeraj Dhingra and Hersh Manek, Scimplify operates research and development (R&D) facilities in Bengaluru and Hyderabad. Its US expansion will 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.
Scimplify’s current customers include Henkel, Coromandel, Dr Reddy’s, Coherent, Holcim, BASF, Sanyo, Marubeni, TDK and Mankind Pharma.
The company expects its expanded US capabilities to support its next phase of growth. International markets currently account for 50% of its revenue, up from 20% a year ago, while India accounts for the remaining 50%. The company expects the share of international markets to rise to 70% by the end of next year.
Per the ministry of corporate affairs (MCA) platform accessed via Tracxn, the founders together own 29.8% of the company, followed by early backer 3one4 Capital at 15.2% and Accel at 13.7%. Scimplify’s revenue surged more than 11-fold from ₹18.3 crore in fiscal year 2024 (FY24) to ₹204.3 crore in FY25. Its loss widened from ₹1.9 crore in FY23-24 to ₹25.4 crore in FY24-25.
According to Tracxn, as of July, the company’s post-money valuation was $249 million.
Rachit Parekh, partner at Accel, said in a statement, “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.”