Bengaluru-based Startup altM Raises $10.3 Million to Scale Agricultural-Waste-Based Chemicals
Bengaluru-based startup altM raises $10.3 million in Series A funding to scale bio-based specialty chemicals made from agricultural waste.
altM Raises $10.3 Million to Scale Production of Bio-Based Specialty Chemicals
Bengaluru-based specialty chemicals startup altM has raised $10.3 million (₹97.5 crore) in a Series A funding round led by Rainmatter by Zerodha and Mela Ventures. Existing investors Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact also participated, alongside strategic angel investors.
Founded in 2022 by former Tesla manufacturing executives Apoorv Garg and Yugal Raj Jain, altM develops specialty chemicals and biomaterials by converting agricultural residue into industrial inputs.
The fresh capital will support manufacturing expansion, research and development, customer qualification programmes, and the growth of its engineering and commercial teams. A significant portion will go towards building a commercial manufacturing facility with an annual capacity of 1,000 tonnes by 2028.
What altM is building
Agricultural waste such as sugarcane bagasse and rice straw contains valuable plant-based components that can be processed into industrial materials.
altM uses proprietary biomass deconstruction and upgrading technologies to separate these materials into three major components: cellulose, hemicellulose and lignin. Each fraction can be further processed into different specialty chemicals, allowing the company to develop multiple products from a single feedstock.
These materials are intended for applications across beauty and personal care, textiles, packaging, construction, industrial chemicals and consumer goods.
The company's initial products moving towards commercialisation include a lignin-derived SPF booster for suncare, a cellulose-based rheology modifier and bio-derived ferulic acid for cosmetics and personal care formulations.
From pilot production to commercial manufacturing
The funding marks an important stage in altM's manufacturing journey.
The company has completed the installation of a 70-tonne-per-year pilot plant in Bengaluru's Electronic City. However, the facility remains in pre-production as the company completes the required certifications and validations.
According to co-founder and CEO Apoorv Garg, the company expects to move towards production and begin fulfilling purchase orders as these processes are completed.
altM is also working with nearly 30 beauty and personal care customers at different stages of product development, testing and commercialisation, with around 16–18 undergoing active testing and validation.
The next manufacturing milestone is a 1,000-tonne-per-year commercial facility targeted for 2028. Over the following five years, the startup aims to expand its total manufacturing capacity to 10,000 tonnes annually.
Why bio-based specialty chemicals matter
Industrial manufacturing has relied heavily on petroleum-derived raw materials for decades. These materials are used in everything from cosmetics and packaging to textiles and construction.
altM is attempting to create alternatives using agricultural residue that is often discarded or underutilised.
The opportunity lies in replacing conventional industrial inputs with bio-based materials that can deliver comparable performance, quality and cost.
However, this transition depends on more than developing a sustainable alternative in the laboratory. Manufacturers must also demonstrate consistent quality, reliable supply, commercial pricing and compatibility with existing production processes.
This is where scaling becomes critical.
What comes next for altM?
The immediate priority is to move its pilot plant into production, qualify products with customers and build a commercial sales pipeline.
The company has already advanced six molecules to the demonstration stage, with three selected for pilot production. It has also expanded its laboratory footprint nearly fivefold since its earlier seed funding round of $3.5 million in 2023.
Its broader research pipeline extends beyond personal care into construction, electronics, automotive, polymers and battery materials.
The opportunity: If altM can establish reliable manufacturing and secure repeat customer demand, it could become a supplier of bio-based industrial materials across several sectors.
The challenge: Scaling specialised chemistry is capital-intensive. The company will need to prove that its products can match conventional alternatives on performance, quality, cost and manufacturing consistency.
The Bottom Line
altM's Series A funding is about more than expanding a cleantech startup. It reflects a broader attempt to rethink the raw materials used in industrial manufacturing.
By converting agricultural residue into specialty chemicals, the company is working at the intersection of biotechnology, materials science and industrial manufacturing.
The next milestone will not simply be building a larger plant. It will be demonstrating that these materials can move from pilot production into reliable, commercially competitive supply chains.
