Indian Startup Scimplify Raises $25M to Expand AI-Driven Production of Critical Materials

Image: Scimplify’s ScinodeImage Credits:Scimplify · Source

Bengaluru-based Scimplify secures $25 million to expand its AI platform and manufacturing network, aiming to reduce global dependence on China for specialty chemicals and critical materials.

Indian startup Scimplify has raised $25 million in an all-equity strategic funding round led by Hitachi Ventures, with participation from customers Henkel and Teknor Apex, as well as existing backers including Accel India and Bertelsmann India Investments. This latest investment elevates the company's valuation to approximately $250 million, up from $150 million following its $40 million Series B round earlier in 2025. The Bengaluru-based firm has now amassed $80 million in total equity funding since its founding in 2023.

Scimplify harnesses artificial intelligence to accelerate the development and manufacturing of specialty chemicals and critical materials — sectors traditionally reliant on complex, time-consuming supply chains dominated by China. Its proprietary AI platform, Scinode, uses specialized AI agents to optimize research, manufacturing, and quality control processes. This approach can reduce product development timelines from the typical 12-18 months down to as little as two months in some cases.

The startup manages production at over 500 partner manufacturing facilities, primarily in India (about 90%), and plans to expand its network to the US and Japan within the next year. Its US revenue has grown sixfold over the past year to approximately $60 million, now representing roughly 30% of Scimplify's business. Globally, the company serves over 1,000 customers in more than 40 countries and has achieved a recent annualized revenue run rate of $200 million, tripling year-over-year. The firm aims to reach $400 million in annualized revenue within the coming year and has been EBITDA-positive for two months, targeting profitability after tax imminently.

Scimplify's growing focus on sectors such as energy, electronics, and defense now accounts for nearly half of its revenue, up from less than 15% a year ago. This shift aligns with increased demand for critical materials driven by AI technologies, infrastructure development, and geopolitical factors. The company is actively developing alternative sources for tungsten derivatives recovered from scrap and rare earth materials, both currently sourced predominantly from China.

Notable partners include Japanese electronics manufacturer TDK, German chemicals group BASF, and Hitachi, illustrating Scimplify's capacity to serve diverse industrial clients. With its new funding, the company plans to allocate $7.5 million toward US market expansion—including building out manufacturing capabilities—and $2 million toward advancing the Scinode AI platform further. Scimplify employs around 340 people globally, including approximately 70 scientists, with main operations in India and local teams in the US, Japan, Indonesia, and the UAE.

Scimplify’s AI-powered approach aims to challenge the current global supply chain dominance in critical chemicals and materials, offering manufacturers faster, more flexible, and geographically diversified production options.