Scimplify Raises $25M to Break China's Grip on Critical Materials with AI
As manufacturers across industries push to reduce their reliance on Chinese suppliers, Indian startup Scimplify has raised $25 million to expand its AI-powered approach to producing specialty chemicals and critical materials — with semiconductors, defense, and energy emerging as key growth markets.
The all-equity strategic round was led by Hitachi Ventures, with customers Henkel and Teknor Apex joining as new investors. Existing backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital also participated. According to a person familiar with the transaction, the round values the Bengaluru-based startup at $250 million post-investment, 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.
Accelerating Materials Discovery to Commercial Scale
The growing adoption of AI and advanced computational tools has accelerated materials discovery and research. However, turning promising chemistry into commercially available products at scale remains a slow and complex process. Manufacturers need to develop production processes, qualify facilities, and meet stringent quality standards — all while navigating supply chains limited to a handful of countries. Scimplify aims to shorten that process.
In some cases, the startup, founded in 2023, has gone from receiving a customer's requirements to delivering the finished material in just two months, compared with the 12 to 18 months such work would typically take, co-founder Sachin Santhosh said in an interview.
How the Scinode AI Platform Works
Once it receives an order, Scimplify develops chemical manufacturing processes at its research facilities in Bengaluru and Hyderabad and then transfers them to partner factories for commercial production. Its proprietary AI platform, Scinode, helps coordinate the work by identifying suitable production routes and manufacturing facilities, while tracking quality and regulatory requirements. The platform uses specialized AI agents for different functions, including research, manufacturing, and quality control, Santhosh told TechCrunch.
"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."
Why It Matters in 2026
With global supply chains under renewed pressure in 2026 — from export controls on advanced semiconductors to tariffs on critical minerals — the ability to onshore or friend-shore specialty chemical production has become a strategic priority for governments and manufacturers alike. Scimplify's AI-driven model offers a potential template for reducing dependence on a small number of supplier nations, particularly as demand surges for materials used in chips, defense systems, and clean energy technologies.
via TechCrunch AI