Scimplify's $25M funding round targets supply chain independence from China with AI-driven materials
The Indian startup has raised $25 million in an all-equity round to scale its artificial intelligence platform for specialty chemicals and critical materials production, positioning itself as an alternative to Chinese suppliers across semiconductors, defense and energy sectors.
Bengaluru-based Scimplify has secured $25 million in funding as industrial manufacturers seek alternatives to Chinese sourcing. The all-equity strategic round was led by Hitachi Ventures, with existing customers Henkel and Teknor Apex joining as new investors alongside prior backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital. The investment values the company at $250 million, up from $150 million following its $40 million Series B in March 2025, bringing cumulative equity funding to $80 million.
The startup's core challenge involves converting chemical discoveries into mass-produced goods. While AI and computational advances have accelerated the discovery phase, scaling production requires developing manufacturing processes, certifying facilities, and maintaining quality standards across supply chains often limited to a handful of nations. Scimplify aims to compress this timeline significantly.
Founded in 2023, Scimplify has demonstrated the ability to move from customer specification to finished material delivery in approximately two months, compared with the typical 12 to 18 month cycle, according to co-founder Sachin Santhosh. The company operates research facilities in Bengaluru and Hyderabad, then transfers processes to partner factories for commercial-scale production.
The company's proprietary platform, Scinode, orchestrates this workflow by selecting production routes and manufacturing facilities while monitoring quality and regulatory compliance. The system deploys specialized AI agents handling research, manufacturing and quality control functions. Santhosh explained that "Each of these agents is basically solving for what [a customer] would want, working backward from the customer's requirement. This helps us move a lot faster and remember customer context even for future references."
Scimplify coordinates production across a network exceeding 500 manufacturing facilities, with an internal team of scientists and engineers overseeing operations. Currently, approximately 90% of manufacturing occurs in India, though the startup intends to establish production capacity in the U.S. and Japan within the next year to serve those markets more effectively.
Revenue acceleration and market expansion
The U.S. market has become a significant growth driver, with annualized revenue run rate climbing sixfold to roughly $60 million from $10 million one year prior. This region now represents approximately 30% of total business, while international customers collectively generate more than half of revenue compared with less than 5% eighteen months ago.
Scimplify's overall annualized revenue run rate has reached approximately $200 million, tripling year-over-year, with a target of $400 million within the next twelve months. The company has achieved EBITDA positivity for the past two months and expects to reach post-tax profitability this month, Santhosh stated. The startup serves more than 1,000 customers across more than 40 countries.
Energy, electronics and defense sectors now comprise 45% to 50% of revenue, up from less than 15% annually. This shift reflects AI-driven demand for electronics and energy infrastructure materials alongside defense industry requirements stemming from geopolitical tensions.
Strategic focus on Chinese supply chain alternatives
Scimplify is developing tungsten derivatives sourced from scrap materials, providing customers with alternatives to supply chains concentrated in China. The startup is simultaneously pursuing rare earth materials production, another category where global sourcing remains heavily dependent on Chinese suppliers.
The company works with major industrial customers including TDK, BASF, and Hitachi. Santhosh cited a TDK project as demonstrating how Scimplify can compress development and delivery timelines for specialty materials, though specific project durations vary.
Capital deployment and workforce
Scimplify has allocated approximately $7.5 million from the new funding toward U.S. expansion, including manufacturing network development. An additional $2 million is earmarked for Scinode platform enhancement.
The startup employs roughly 340 people, including approximately 70 scientists. While the majority of staff is based in India, Scimplify maintains local teams in the U.S., Japan, Indonesia, and the UAE.