altM, a company specializing in the production of specialty chemicals, has successfully raised $10.3 million in a Series A funding round. New investors in this round include Rainmatter from Zerodha and Mela Ventures. Existing investors such as Omnivore, Theia Ventures, Aureolis Ventures, and Spectrum Impact, as well as strategic business angels, were also among the participants.
The Bengaluru-based company announced that the funds will be used to expand production capacity, strengthen research and development activities, support customer qualification programs, and develop engineering and commercial teams. This investment will enable altM to transition from pilot-scale production to full commercial manufacturing.
altM was founded in 2022 by Apurva Garg and Jugal Raj Jain. The company utilizes lignocellulosic biomass, such as rice straw and sugarcane bagasse, to create industrial chemicals. altM's processes use biomass components—cellulose, hemicellulose, and lignin—to derive multiple products from a single raw material.
The startup serves industries including beauty and personal hygiene product manufacturing, textiles, construction, packaging, and consumer goods, with a particular focus on developing bio-based substitutes for fossil fuel-derived raw materials.
Abhinav Negi, Head of Climate and Deep Tech at Rainmatter by Zerodha, stated: 'We are pleased to partner with altM as it moves into commercial-scale production. Restructuring basic supply chains away from fossil fuel-derived raw materials is one of the most critical challenges facing modern manufacturing today.'
Krishnakumar N, Managing Partner at Mela Ventures, emphasized that solving deep technology problems requires understanding the interaction of multiple fields. He added: 'altM is solving one of the most complex challenges in industrial chemistry—creating next-generation materials that can match the performance of fossil fuel-derived raw materials while fundamentally changing the origin of their carbon.'
Since raising a seed round of $3.5 million in 2023, altM has established an integrated research and pilot production facility in Bengaluru. This facility combines laboratory research, demonstration production, and pilot manufacturing. The company reported that in less than two years, it increased its laboratory base nearly fivefold, launched a demonstration production unit, and brought six molecules to the demonstration level. Three of these were selected for production at the pilot plant.
Products slated for commercialization include a lignin-based SPF enhancer for sunscreens, a cellulose-based rheology modifier, and a bio-derived ferulic acid for cosmetics and personal care. Apurva Garg, co-founder and CEO of altM, said: 'Industrial production for over a century has relied on fossil carbon. We are creating a new source of industrial carbon from agricultural waste. Our goal is to develop materials and production processes that allow customers to implement these materials with the required performance, cost, quality, and scale for industrial applications.'
Abhilash Sethi, Partner at Omnivore, shared his view: 'We believed in altM from the beginning, and what strengthens our confidence is the team's ability to turn ambitious science into something real and commercially scalable. The transition from the lab to reliable production and ultimately to customers is a complex journey. altM has demonstrated a rare ability to make this transition.'
