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Scimplify Raises $25M to Expand Its AI-Driven Materials Network
Indian startup Scimplify raised $25 million in an all-equity round led by Hitachi Ventures to expand its specialty-chemicals and critical-materials business. The company plans to put $7.5 million toward U.S. expansion and $2 million into it
AI.info Team · Written with AI ·
Scimplify raised $25 million on October 14 in an all-equity round to expand its AI-supported production of specialty chemicals and critical materials, as manufacturers look for alternatives to Chinese suppliers. Hitachi Ventures led the investment, joined by Scimplify customers Henkel and Teknor Apex as new investors. Existing backers Accel India, Bertelsmann India Investments, Omnivore and 3one4 Capital also participated.
Scinode coordinates the path from order to production
The Bengaluru-based startup uses its Scinode platform to coordinate work that begins with a customer order and can end with commercial production at a partner factory. Scimplify develops manufacturing processes at research facilities in Bengaluru and Hyderabad, then transfers them to its manufacturing network. Scinode helps identify production routes and suitable facilities while tracking quality and regulatory requirements.
The platform uses specialized AI agents for tasks including research, manufacturing and quality control. “This helps us move a lot faster and remember customer context even for future references,” co-founder Sachin Santhosh told TechCrunch. Scimplify’s scientists and engineers oversee production across more than 500 manufacturing facilities.
Santhosh said some projects have gone from receiving a customer’s requirements to delivery in two months, compared with a typical 12 to 18 months. The timelines vary by project, he said. Scimplify is working on tungsten derivatives made from scrap and on rare-earth materials, both areas where the company is seeking to offer customers alternatives to supply concentrated in China and a handful of other countries.
U.S. expansion gets $7.5 million
Scimplify plans to allocate about $7.5 million of the new funding to expanding in the United States, including building out its manufacturing network there. Another $2 million is earmarked for Scinode development. The company also plans to expand its production network in the U.S. and Japan over the next year; about 90% of its manufacturing currently takes place in India.
The United States has become a larger market for the startup. Santhosh put Scimplify’s U.S. annualized revenue run rate at about $60 million, up from $10 million a year earlier, and said the market represents roughly 30% of its business. Customers outside India now contribute more than half of revenue, compared with less than 5% around 18 months earlier, according to Santhosh.
Revenue grows as Scimplify targets new sectors
Scimplify serves more than 1,000 customers and has delivered products to more than 40 countries. Its annualized revenue run rate reached about $200 million, triple the level a year earlier, Santhosh said. The startup is targeting $400 million in annualized revenue over the next year and has been EBITDA-positive for the past two months, he said.
Energy, electronics and defense now account for about 45% to 50% of revenue, up from less than 15% a year ago. Scimplify works with customers including electronics manufacturer TDK, chemicals group BASF and Hitachi. The company employs about 340 people, including roughly 70 scientists, with most of its workforce in India.
The new round puts valuation in focus
The $25 million investment brings Scimplify’s total equity funding to $80 million, the company said. TechCrunch reported that the transaction values the startup at $250 million, citing a person familiar with the deal; Scimplify declined to disclose its valuation. The reported figure compares with a $150 million post-money valuation after the company’s $40 million Series B in March 2025.
The funding gives Scimplify capital for two distinct expansions: a wider U.S. production network and further work on the software coordinating manufacturing. For now, the company’s production remains centered in India, where it conducts about nine-tenths of its manufacturing and runs its Bengaluru and Hyderabad research facilities.