As manufacturers across industries seek to reduce their dependence on Chinese suppliers, Indian startup Simplify has raised $25 million to expand its AI-powered approach to the production of specialty chemicals and critical materials, with semiconductors, defense and energy emerging as key growth markets.
The all-stock strategic round was led by Hitachi Ventures, with additional investors Henkel and Teknor Apex. Existing backers Accel India, Bertelsmann India Investments, Omnivore and 3one4 Capital also participated. The round values the Bangalore-based startup at $250 million after the investment, up from $150 million after a $40 million Series B round in March 2025, according to people familiar with the deal. The investment brings Simplify’s total equity raised to $80 million, the startup said, declining to disclose its valuation.
The increasing adoption of AI and advanced computational tools is accelerating materials discovery and research. However, turning promising chemicals into commercial products at scale remains a time-consuming and complex process. Manufacturers must develop production processes, certify facilities, and meet stringent quality standards while navigating supply chains limited to a few countries. Scimplify aims to shorten that process.
Founded in 2023, the startup has delivered finished products in just two months, compared to the usual 12 to 18 months it takes to receive a customer’s request, co-founder Sachin Santosh (pictured above) said in an interview.
Once Simplify receives orders, it develops chemical manufacturing processes at its research facilities in Bangalore and Hyderabad and transfers them to partner factories for commercial production. Scinode, a proprietary AI platform, helps coordinate work by identifying appropriate production routes and manufacturing facilities while tracking quality and regulatory requirements. Santosh told TechCrunch that the platform uses specialized AI agents for various functions such as research, manufacturing, and quality control.
“Each of these agents is essentially working backwards from the customer’s requirements to solve for what (the customer) wants,” Santosh said. “This allows us to act much more quickly and remember the customer’s context for future reference as well.”
Scimplify’s in-house team of scientists and engineers oversees production across a network of more than 500 manufacturing facilities. This helps customers establish alternative sources of supply for materials whose supply is concentrated in China and several other countries.
Approximately 90% of Scimplify’s manufacturing currently takes place in India. However, the startup plans to expand its production network to the US and Japan over the next year in a bid to attract more customers in both markets, Santosh said.
Santosh said the US has emerged as a key growth market, with Simplify’s annual revenue run rate in the country increasing six-fold to about $60 million from $10 million a year ago. This market now accounts for about 30% of the company’s business, and customers outside India together contribute more than half of its revenue, compared to less than 5% about 18 months ago.
Overall, Simplify, which has served more than 1,000 customers and delivered products to more than 40 countries, had an annual revenue run rate of about $200 million, tripled year-over-year, Santosh told TechCrunch. The startup is targeting $400 million in annual revenue over the next year. Simplify has been EBITDA positive for the past two months and expects to return to an after-tax profit this month, he said.
Energy, electronics and defense now account for about 45% to 50% of Simplify’s revenue, up from less than 15% a year ago, Santhosh said. This growth will come as AI drives demand for materials used in electronics and energy infrastructure, while ongoing wars drive demand from the defense industry.
Scimplify is committed to manufacturing tungsten derivatives from scrap, providing customers with an alternative source of materials whose supply is concentrated in China. The startup is also working on rare earth materials, another category where global supply chains remain heavily dependent on China.
The startup is working with customers including Japanese electronics manufacturer TDK, German chemical group BASF and Hitachi. Santhosh cited a project involving TDK as an example of how start-ups can reduce the time needed to develop and deliver specialty materials. He said schedules vary depending on the project.
With the latest funding, Simplify plans to spend about $7.5 million to expand its U.S. operations, including building out its manufacturing network, Santosh said. An additional $2 million has also been allocated for further development of Scinode.
The startup employs about 340 people, about 70 of whom are scientists. Most of our employees are based in India, but we also have local teams in the United States, Japan, Indonesia, and the United Arab Emirates.
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