The chips in your phone, the batteries in electric cars and the systems inside modern weapons all depend on specialty chemicals and critical materials, and a huge share of them come from China. Bengaluru-based Scimplify is using AI to build alternatives, and it has just raised $25 million to scale faster.

The all-equity strategic round was led by Hitachi Ventures, TechCrunch reported. Chemicals giant Henkel and polymer maker Teknor Apex, both Scimplify customers, joined as new investors, alongside existing backers Accel India, Bertelsmann India Investments, Omnivore and 3one4 Capital. A person familiar with the deal put the post-money valuation at $250 million, up from a reported $150 million at its $40 million Series B in March 2025. Scimplify has now raised about $80 million in equity.

AI Meets the Chemical Supply Chain

Founded in 2023, Scimplify develops and scales production of specialty chemicals and critical materials, with fast growth in semiconductors, defense and energy. Its proprietary platform, Scinode, identifies production routes and facilities, then tracks quality and regulatory requirements. Specialized AI agents support research, manufacturing and quality control.

The agents help the team "move a lot faster and remember customer context even for future references," co-founder Sachin Santhosh told TechCrunch. Working with a network of more than 500 manufacturing facilities, Scimplify says it can sometimes go from customer requirements to finished material in about two months, compared with the typical 12 to 18 months. It is also developing tungsten derivatives from scrap and rare earth materials.

Numbers That Turn Heads

Scimplify's annualized revenue run rate is about $200 million, roughly triple what it was a year ago, and the company is targeting $400 million within the next year. Its U.S. business is running at about $60 million, up sixfold from $10 million a year earlier, and now makes up about 30% of revenue. More than half of revenue comes from outside India, up from under 5% roughly 18 months ago.

The company has been EBITDA-positive for two months and expects to turn a profit after tax this month. It serves more than 1,000 customers, ships to more than 40 countries and counts TDK, BASF and Hitachi among its clients.

Coming to America

About 90% of Scimplify's production currently happens in India, but that is changing. Roughly $7.5 million of the new funding is earmarked for U.S. expansion, including building out manufacturing, with plans to add production in the U.S. and Japan over the next year. About $2 million will go toward further development of Scinode. The company employs about 340 people, including roughly 70 scientists.

Why It Matters

Supply chain security has become a priority for Washington, Tokyo and Brussels, especially for materials tied to chips and defense. A fast, AI-driven producer with plants outside China is exactly what Western manufacturers say they want. Scimplify's growth suggests they are willing to pay for it.

Source

TechCrunch — "Scimplify raises $25M to challenge China's grip on critical materials with AI"