altM Secures $10.3 Million to Transform Agricultural Residue into Chemicals

Bengaluru-based specialty chemicals startup altM has successfully secured $10.3 million in a Series A funding round, primarily led by new stakeholders Rainmatter by Zerodha and Mela Ventures. This funding round also included contributions from existing investors such as Omnivore, Theia Ventures, Aureolis Ventures, and Spectrum Impact, alongside VC Grid and strategic angel investors.

altM plans to utilise the newly acquired funds to enhance its manufacturing capabilities, bolster research and development efforts, and strengthen customer qualification programmes as well as engineering and commercial teams. This initiative is a crucial step as the company transitions from pilot-scale production to full commercial manufacturing.

Innovation at altM

Founded in 2022 by former Tesla manufacturing experts Apoorv Garg and Yugal Raj Jain, altM is establishing a pioneering specialty chemicals platform that transforms agricultural residue into high-performance industrial chemicals. The company has also welcomed bioprocessing scientist Dr Harshad Velankar as its chief scientific officer, further enhancing its expertise in the field.

Process and Applications

The innovative platform at altM converts lignocellulosic biomass, such as sugarcane bagasse and rice straw, into a wide array of materials used in beauty, personal care, textiles, industrial chemicals, construction, packaging, and consumer goods. By leveraging cellulose, hemicellulose, and lignin, altM is able to produce multiple products from a single source. This method not only allows for agricultural residue to become a valuable source of industrial carbon but also decreases reliance on fossil-derived raw materials.

Progress and Facilities

Following a successful seed funding of $3.5 million in 2023, altM has established an integrated research and development along with a pilot manufacturing facility in Bengaluru. This facility consolidates laboratory research, demonstration manufacturing, and pilot production operations, significantly enhancing efficiency.

Since its inception, the company has expanded its laboratory space almost fivefold, commissioned its demonstration manufacturing facility, and progressed six molecules to demonstration scale, with three now designated for pilot plant production.

Commercial Ventures

Among the initial products progressing toward commercialisation are a lignin-derived SPF booster aimed at the suncare market, a cellulose-based rheology modifier, and bio-derived ferulic acid suited for cosmetics and personal care formulations.

altM faces competition from companies like Scimplifi, Covvalent, Atomgrid, and Tulon Materials, all of which have recently secured funding as well. The latest investment will enable altM to scale its manufacturing processes and broaden customer deployments, aiming to establish a robust platform for producing industrial chemicals from agricultural residues.