altM Raises $10.3 Million Series A to Scale Agricultural Waste-Based Specialty Chemicals

Bengaluru-based specialty chemicals startup altM has raised $10.3 million in a Series A funding round led by Rainmatter by Zerodha and Mela Ventures. The round also included participation from existing investors Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact, alongside VC Grid and strategic angel investors.

The company plans to use the fresh capital to expand manufacturing capabilities, research and development, customer qualification programmes, and its engineering and commercial teams. The funding comes as altM prepares to move from pilot-scale production towards commercial manufacturing.

Turning Agricultural Residue into Industrial Chemicals

Founded in 2022, altM is developing a specialty chemicals platform that converts agricultural residue into high-performance industrial materials.

The company was founded by Apoorv Garg and Yugal Raj Jain, both former manufacturing leaders at Tesla. 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, into materials for industries such as beauty and personal care, textiles, construction, packaging, consumer goods and industrial chemicals.

Rather than treating agricultural residue as waste, altM aims to use it as a source of industrial carbon. Its platform works with three major components of biomass: cellulose, hemicellulose and lignin. These components can be processed into multiple products from a single feedstock.

The approach is designed to reduce dependence on fossil-derived raw materials while creating higher-value applications for agricultural by-products.

From Research to Pilot-Scale Manufacturing

Since raising $3.5 million in a seed round in 2023, altM has developed an integrated research and development and pilot manufacturing facility in Bengaluru.

The facility brings laboratory research, demonstration manufacturing and pilot production together, allowing the company to move promising materials through different stages of development.

According to the company, its laboratory footprint has expanded nearly fivefold. It has commissioned its demonstration manufacturing facility and advanced six molecules to demonstration scale, with three selected for pilot plant production.

This progress is important as specialty chemicals typically require more than laboratory-level validation. Products must also demonstrate consistent performance and meet customer qualification requirements before they can be adopted in industrial applications.

Three Products Moving Towards Commercialisation

altM has identified three initial products that are moving towards commercialisation:

• Lignin-derived SPF booster: Designed for use in suncare applications.

• Cellulose-based rheology modifier: Intended for personal care and other formulations where controlling product texture and flow is important.

• Bio-derived ferulic acid: Developed for cosmetics and personal care formulations.

These products represent the company's effort to translate biomass-derived materials into specialised ingredients for established industrial markets.

The next stage will involve scaling production and progressing customer qualification programmes as the company prepares for broader commercial deployment.

Funding and the Competitive Landscape

The latest $10.3 million Series A follows altM's $3.5 million seed funding round in 2023. The new investment brings in Rainmatter and Mela Ventures as lead investors, while several existing investors have participated again.

altM operates in a developing market for bio-based specialty chemicals and materials. Other companies in the broader space include Scimplifi, Covvalent, Atomgrid and Tulon Materials, which have also raised fresh funding this year, according to the source report.

What Comes Next for altM?

The immediate priority for altM is to move beyond pilot-scale production and establish commercial manufacturing capabilities.

The funding will support manufacturing expansion, further research and development, customer qualification, and team growth across engineering and commercial functions.

Its longer-term opportunity lies in developing a scalable platform that can turn agricultural residue into industrial inputs for multiple sectors. The company's ability to scale production, qualify products with customers and achieve commercial adoption will be central to its next phase of growth.