MStack AI, an AI-native chemical research and development (R&D) and manufacturing startup, is in advanced discussions to raise at least $30 million in a fresh funding round, according to people aware of the developments cited by the sources.
The company is being valued at around $230 million on a pre-money basis, one of the people said. The funding round could potentially expand to $40-50 million as talks with investors progress and interest in the startup strengthens, another person said.
If the larger round materialises, MStack AI’s post-money valuation could fall between $260 million and $280 million, according to the second person.
Existing backers Alpha Wave and Lightspeed are expected to contribute a significant share of the new capital, according to the first person.
Prosperity7 Ventures is also in discussions to participate as a new investor, although its proposed contribution is expected to be smaller, the person added.
The ongoing fundraising discussions come as Indian AI startups attract renewed attention from investors following a relatively cautious funding period in the sector.
The fundraising activity at MStack AI reflects a broader increase in investor interest in Indian AI startups.
Both companies are part of a growing group of AI-focused startups in India that are either actively raising capital or engaged in discussions with potential investors.
The renewed activity represents a shift from the more cautious funding environment seen across India’s AI startup ecosystem over the past couple of years. During that period, investors were increasingly focused on distinguishing startups with defensible technological advantages from companies primarily building applications on top of third-party AI models.
For investors, the latest funding discussions also indicate a greater willingness to back AI companies operating across specialised and potentially high-value applications, including chemical R&D, manufacturing and generative AI infrastructure.
India is currently the world’s third-largest startup ecosystem, making the resurgence in AI funding significant for the country’s broader technology and venture capital landscape.
MStack AI’s ongoing fundraising could provide the company with additional capital to expand its AI-driven chemical R&D and manufacturing capabilities, while the potential participation of existing and new investors would strengthen its funding base. With the round potentially reaching $40-50 million, the company’s valuation and investor backing could rise further as discussions progress.
