Scimplify raises $25 million to expand AI-led critical materials business in U.S.

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Scimplify raises $25M for U.S. AI expansion

Highlights

Scimplify raised $25 million in an all-equity round led by Hitachi Ventures, bringing total equity funding to $80 million and raising its valuation to $250 million.
The company leverages its AI platform Scinode to accelerate specialty chemical production, serving over 1,000 customers across 40 countries and targeting a $400 million annualized revenue run rate.
Scimplify has been EBITDA-positive for the past two months and anticipates after-tax profitability this month, strengthening its market position in critical materials supply.

Funding round and expansion plan

As first reported by TechCrunch, Scimplify has raised $25 million in an all-equity strategic round led by Hitachi Ventures, with customers Henkel and Teknor Apex joining as new investors alongside existing backers Accel India, Bertelsmann India Investments, Omnivore, and 3one4 Capital.

The Bengaluru-based startup says the latest round brings its total equity funding to $80 million. A person familiar with the transaction says the investment values Scimplify at $250 million after the round, up from $150 million after its $40 million Series B in March 2025, though the company declines to disclose its valuation.

Founded in 2023, Scimplify is building an AI-powered model for producing specialty chemicals and critical materials for sectors including semiconductors, defense and energy. The company says it can in some cases move from receiving customer requirements to delivering finished material in two months, compared with the 12 to 18 months such work typically takes.

AI platform and market position

Scimplify develops chemical manufacturing processes at its research facilities in Bengaluru and Hyderabad, then transfers them to partner factories for commercial production. Its proprietary AI platform, Scinode, is used to identify production routes and manufacturing facilities while tracking quality and regulatory requirements through specialized AI agents focused on research, manufacturing and quality control.

The company says its scientists and engineers oversee production across a network of more than 500 manufacturing facilities, helping customers build alternative sourcing channels for materials whose supply is concentrated in China and a small number of other countries. Scimplify says it now serves more than 1,000 customers, has delivered products to more than 40 countries, and is targeting a $400 million annualized revenue run rate over the next year.

Co-founder Sachin Santhosh says the startup has been EBITDA-positive for the past two months and expects to become profitable after tax this month. That financial milestone could strengthen its position as manufacturers look for faster and more diversified access to critical materials.

Our earlier article on Malaysia’s rare earth sector examined how U.S. efforts to diversify critical mineral supplies are driving interest in Malaysian mining projects and processing investments. We noted that multiple companies were assessing opportunities and that government and industry discussions were focused on building alternative supply chains to reduce reliance on China for strategically important materials.

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