altM Funding: Raises $10.3 Million in Series A Led by Rainmatter and Mela Ventures
- altM raised $10.3 million in Series A funding, led by Rainmatter by Zerodha and Mela Ventures, with participation from existing investors.
- The latest Series A round follows altM’s $3.5 million seed funding in 2023, led by Omnivore.
- The startup converts agricultural residue such as rice straw and sugarcane bagasse into specialty chemicals using its proprietary altMorph technology.
Bengaluru-based specialty chemicals startup altM has raised $10.3 million (approximate ly ₹97.5 crore) in a Series A funding round led by new investors 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.
The company will use the fresh capital to expand its manufacturing capabilities, strengthen research and development (R&D), support customer qualification programmes and grow its engineering and commercial teams. The funding will help altM move from pilot-scale production towards commercial manufacturing.
Founded in 2022 by former Tesla manufacturing leaders Apoorv Garg and Yugal Raj Jain, altM develops specialty chemicals and biomaterials by converting agricultural residue into industrial materials. Bioprocessing scientist Dr Harshad Velankar later joined the company as its Chief Scientific Officer.
About altM
altM is developing an alternative source of industrial raw materials using lignocellulosic biomass, which includes agricultural residues such as sugarcane bagasse, rice straw and wheat straw.
Its proprietary altMorph biorefinery technology uses a combination of biomass pretreatment, thermochemical deconstruction and catalytic upgradation to break down plant material into its major components and convert them into useful chemicals and biomaterials.
The process works with three primary fractions of biomass: cellulose, hemicellulose and lignin. Instead of extracting a single product from agricultural residue, altM aims to utilise multiple components of the same feedstock to develop different industrial materials.
These materials are being developed for applications across beauty and personal care, pharmaceuticals, textiles, construction, packaging, consumer goods and industrial chemicals. The approach is intended to provide alternatives to conventional fossil-derived ingredients used in manufacturing.
The company’s initial products moving towards commercialisation include a lignin-derived SPF booster for suncare formulations, a cellulose-based rheology modifier used to control the flow and texture of formulations, and bio-derived ferulic acid for cosmetics and personal care applications.
altM has also developed a 70-tonne-per-year pilot manufacturing facility in Bengaluru’s Electronic City. The facility is designed to bridge the gap between laboratory research and commercial production by allowing the company to test manufacturing processes, product quality and production economics at a larger scale.
The company also says it has filed six patents in India covering its biomass deconstruction technology and processes for upgrading individual molecules. Its research pipeline includes applications beyond personal care, spanning construction, electronics, automotive, polymers and battery materials.
Fresh Funding to Scale Manufacturing and Customer Deployments
A major focus for altM is moving its products from pilot production to commercial supply. The company has been working with nearly 30 beauty and personal care customers at different stages of product development, testing and commercialisation, according to reports. Around 16–18 customers were in testing and active validation at the time of the report.
The company is preparing to begin commercial production from its existing pilot facility and expects to fulfil initial purchase orders as customer qualification progresses.
It is also planning a 1,000-tonne-per-year commercial manufacturing facility by 2028, which would increase its ability to supply industrial customers. Over the longer term, altM aims to expand its manufacturing capacity to 10,000 tonnes per year over five years. These are company targets rather than operational capacity currently available. <Cite refs={[“turn643397search4″,”turn643397search6”]}/>
The latest Series A round follows altM’s $3.5 million seed funding in 2023, led by Omnivore. The company has since invested in building its integrated R&D and pilot manufacturing infrastructure.
