Specialty chemicals startup altM has raised $10.3 million in a Series A funding round led by new investors Rainmatter, backed by Zerodha, and Mela Ventures. The funding round also saw participation from existing investors Omnivore, Theia Ventures, Aureolis Ventures, and Spectrum Impact, alongside VC Grid and strategic angel investors.
The company plans to utilise the fresh capital to strengthen its manufacturing infrastructure, expand research and development (R&D) activities, and increase customer qualification programmes. Additionally, altM will strengthen its engineering and commercial teams as it prepares to move from pilot-scale operations to commercial manufacturing.
Founded in 2022 by former Tesla manufacturing executives Apoorv Garg and Yugal Raj Jain, altM is building a specialty chemicals business that uses agricultural waste as a raw material to produce high-performance industrial chemicals. Subsequently, bioprocessing scientist Dr. Harshad Velankar joined the company as Chief Scientific Officer.
altM’s technology platform processes lignocellulosic biomass, including sugarcane bagasse and rice straw, to develop materials for several industries, including beauty and personal care, textiles, construction, packaging, industrial chemicals, and consumer goods.
The company’s proprietary process extracts and utilises three key components of agricultural biomass: cellulose, hemicellulose, and lignin. By developing multiple products from a single raw material, altM aims to transform agricultural waste into industrial carbon while reducing the industry’s dependence on fossil-based inputs.
Following its $3.5 million seed funding round in 2023, altM established an integrated research and development and pilot manufacturing facility in Bengaluru. The facility brings together laboratory research, demonstration-level manufacturing, and pilot production, enabling the company to advance product development and manufacturing processes under one roof.
Since establishing the facility, altM has expanded its laboratory capacity nearly fivefold, operationalised its demonstration manufacturing facility, and advanced six molecules to the demonstration stage. Of these, the company has shortlisted three for production at its pilot plant.
Meanwhile, altM’s initial commercialisation pipeline includes a lignin-based SPF booster for sun protection products, a cellulose-derived rheology modifier, and bio-based ferulic acid for cosmetics and personal care formulations.
The startup operates in an emerging specialty chemicals market that has attracted investments in several other companies, including Scimplifi, Covvalent, Atomgrid, and Tulon Materials. These companies have also secured fresh investments this year.
With its latest Series A funding, altM aims to increase production capacity, strengthen manufacturing operations, and expand customer deployments. The company is focused on building an industrial chemicals platform that uses agricultural residues as alternative feedstock for a wide range of applications.
