Bengaluru startup altM has raised $10.3 million funding in a Series A round led by Rainmatter by Zerodha and Mela Ventures. The round also saw participation from existing investors Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact, along with VC Grid and strategic angel investors.
Key Highlights
- Bengaluru Startup altM raises $10.3 million funding in Series A round led by Rainmatter and Mela Ventures.
- The startup will expand manufacturing, R&D and customer programmes to commercialise chemicals derived from agricultural residue.
The startup plans to deploy the fresh $10.3 million funding towards expanding its manufacturing capabilities, research and development (R&D), customer qualification programmes, and engineering and commercial teams. The funding will support its transition from pilot-scale production to commercial manufacturing.
Bengaluru Startup altM Raises $10.3 Million to Scale Manufacturing
The latest investment brings together new and existing backers to support altM's next phase of growth. The company aims to strengthen its production infrastructure and accelerate the development and commercialisation of specialty chemicals derived from agricultural residue.
The funding will also help expand customer qualification programmes and build the technical and commercial teams required to support larger-scale operations.
altM Converts Agricultural Waste Into Industrial Chemicals
Founded in 2022 by former Tesla manufacturing leaders Apoorv Garg and Yugal Raj Jain, altM is developing a specialty chemicals platform that transforms agricultural residue into high-performance industrial materials. Bioprocessing scientist Dr Harshad Velankar later joined the company as its chief scientific officer.
Its technology 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.
The platform uses the three primary components of biomass - cellulose, hemicellulose and lignin - to manufacture multiple products from a single feedstock. This approach enables agricultural waste to become a source of industrial carbon while reducing dependence on fossil-derived raw materials.
Bengaluru Startup altM Expands R&D and Pilot Manufacturing Infrastructure
Since raising $3.5 million in a seed funding in 2023, altM has established an integrated R&D and pilot manufacturing facility in Bengaluru. The facility brings laboratory research, demonstration manufacturing and pilot production together under one roof.
The company has expanded its laboratory footprint nearly fivefold, commissioned its demonstration manufacturing facility and advanced six molecules to demonstration scale. Three of these molecules have been selected for pilot plant production.
The progress marks an important step in moving its technology from laboratory development towards commercial-scale manufacturing.
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altM Prepares First Bio-Based Specialty Chemicals for Commercialisation
altM's initial products moving towards commercialisation include a lignin-derived SPF booster for suncare applications, a cellulose-based rheology modifier and bio-derived ferulic acid for cosmetics and personal care formulations.
These products are designed to serve manufacturers seeking alternatives to conventional raw materials across personal care and other industrial applications.
By developing multiple specialty chemicals from agricultural residue, the company is looking to establish a platform that can serve different industries through a common biomass-processing approach.
Bengaluru Startup altM Enters Competitive Bio-Based Chemicals Market
Bengaluru startup altM operates in an emerging segment of the specialty chemicals market, where companies are developing technology-led alternatives to conventional fossil-derived materials.
Its competitors include Scimplifi, Covvalent, Atomgrid and Tulon Materials, which have also raised fresh funding this year.
The latest Series A round will support altM's manufacturing expansion, product development and customer deployments as it moves towards commercial production. Its ability to scale manufacturing and establish demand for its bio-derived chemicals will be important to its next phase of growth.
