Scimplify Raises $25 Million to Challenge China’s Critical Materials Grip
Scimplify raises $25 million to scale AI led critical materials production, expand in the US and Japan, and reduce manufacturers’ supply reliance on China.
Summary
On October 14, 2026, Bengaluru based Scimplify, founded in 2023, raised $25 million in an all equity strategic round led by Hitachi Ventures. Customers Henkel and Teknor Apex joined existing backers Accel India, Bertelsmann India Investments, Omnivore and 3one4 Capital. The round brings total equity funding to $80 million and reportedly values Scimplify at $250 million after investment, up from $150 million following its $40 million Series B in March 2025, although the company declined to disclose its valuation.
Scimplify can turn customer requirements into finished materials within two months, versus the typical 12 to 18 months. Scientists and engineers develop processes in Bengaluru and Hyderabad before transferring them to partner factories. Its Scinode platform uses specialized AI agents for research, manufacturing and quality control to choose production routes and facilities while tracking regulatory and quality requirements across more than 500 plants. About 90% of manufacturing remains in India, with United States and Japan expansion planned over the next year. Customers include TDK, BASF and Hitachi.
Scimplify serves more than 1,000 customers across over 40 countries. Its annualized revenue run rate tripled to about $200 million and is targeted to reach $400 million next year. United States run rate rose sixfold from $10 million to $60 million, representing 30% of business, while markets outside India now contribute more than half of revenue, versus under 5% 18 months ago. Energy, electronics and defense generate 45% to 50%, up from below 15%. EBITDA has been positive for two months, with after tax profitability expected this month. Scimplify is developing tungsten derivatives from scrap and rare earth materials as alternatives to China concentrated supplies. It plans to allocate about $7.5 million to United States expansion and $2 million to Scinode. Its 340 employees include roughly 70 scientists, with teams in India, the United States, Japan, Indonesia and the UAE.
Positives
- Scimplify’s annualized revenue run rate tripled to about $200 million, with $400 million targeted over the next year.
- United States revenue run rate increased sixfold from $10 million to about $60 million and now represents roughly 30% of business.
- Scimplify has delivered products within two months, compared with the typical 12 to 18 month development cycle.
- More than 1,000 customers across over 40 countries give Scimplify an established base for expanding critical materials production.
- EBITDA has remained positive for two months, and Scimplify expects to become profitable after tax this month.
Risks & concerns
- About 90% of Scimplify’s manufacturing remains concentrated in India while its United States and Japan production networks are still being developed.
- Tungsten derivatives and rare earth materials remain exposed to supply chains heavily concentrated in China.
- Scimplify declined to disclose its valuation, leaving the reported $250 million figure dependent on a person familiar with the transaction.
- The planned $7.5 million United States allocation could change as Scimplify’s expansion plans evolve.