Specialty chemicals startup altM raises $10.3 Mn led by Rainmatter, Mela Ventures
Bengaluru-based specialty chemicals startup altM has raised $10.3 million in a Series A funding round led by Rainmatter by Zerodha and Mela Ventures.
The round also included participation from existing investors Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact, as well as VC Grid and several strategic angel investors.
altM plans to deploy the fresh capital to expand its manufacturing capacity, strengthen research and development, accelerate customer qualification programmes, and grow its engineering and commercial teams. The investment will support the company’s transition from pilot-scale production to commercial manufacturing.
Turning agricultural residue into industrial chemicals
Founded in 2022 by former Tesla manufacturing leaders Apoorv Garg and Yugal Raj Jain, altM is building a specialty chemicals platform that converts agricultural residue into high-performance materials. Bioprocessing scientist Dr Harshad Velankar later joined the startup as chief scientific officer.
The company processes lignocellulosic biomass, including sugarcane bagasse and rice straw, to produce materials for industries such as beauty and personal care, textiles, construction, packaging, consumer goods and industrial chemicals.
Its technology uses cellulose, hemicellulose and lignin to create multiple products from a single feedstock. By using agricultural residue as a source of industrial carbon, altM aims to reduce manufacturers’ dependence on fossil-derived raw materials.
Scaling research and manufacturing
Since raising $3.5 million in seed funding in 2023, altM has established an integrated research, development and pilot manufacturing facility in Bengaluru. The site combines laboratory research, demonstration manufacturing and pilot production.
The startup has expanded its laboratory footprint nearly fivefold, commissioned a demonstration manufacturing facility and advanced six molecules to the demonstration stage. Three of those molecules have been selected for pilot plant production.
Among the first products moving towards commercialisation are a lignin-derived SPF booster for suncare products, a cellulose-based rheology modifier and bio-derived ferulic acid for cosmetics and personal care formulations.
Commercial expansion
The Series A funding is expected to help altM increase manufacturing output and broaden customer deployments. The company is seeking to establish a scalable platform for producing specialty and industrial chemicals from agricultural waste.
altM operates in an emerging segment alongside companies such as Scimplifi, Covvalent, Atomgrid and Tulon Materials, which are also developing new approaches to chemicals and materials manufacturing.
