altM Raises $10.3 Million to Scale Specialty Chemicals Production from Agricultural Residue

Bengaluru-based specialty chemicals startup altM has raised $10.3 million in a Series A funding round to expand commercial manufacturing of high-performance chemicals derived from agricultural residue, as it seeks to reduce industrial dependence on fossil-based raw materials.

The funding round saw new investors Rainmatter by Zerodha and Mela Ventures join existing investors Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact, along with strategic angel investors.

The company said the investment will support manufacturing expansion, research and development, customer qualification programmes, and the strengthening of its engineering and commercial teams as it transitions from pilot-scale production to commercial manufacturing.

Founded in 2022 by former Tesla manufacturing leaders Apoorv Garg and Yugal Raj Jain, altM is developing a specialty chemicals platform that converts agricultural residue into industrial materials. Bioprocessing scientist Dr. Harshad Velankar later joined the company as Chief Scientific Officer.

Its technology processes lignocellulosic biomass, including sugarcane bagasse, rice straw and other agricultural waste, into materials for beauty and personal care, textiles, industrial chemicals, construction, packaging and consumer goods.

The platform uses cellulose, hemicellulose and lignin, the major components of biomass, to produce multiple products from a single feedstock. This approach aims to convert agricultural residue into an industrial carbon source while reducing reliance on fossil-derived inputs.

“Industrial manufacturing has relied on fossil carbon for more than a century. We are building a new source of industrial carbon from agricultural residue,” said Apoorv Garg, Co-founder and CEO of altM.

Since its $3.5 million seed funding round in 2023, the company has established an integrated research and pilot manufacturing facility in Bengaluru. It has expanded its laboratory footprint nearly fivefold, commissioned a demonstration manufacturing facility and advanced six molecules to demonstration scale, with three selected for pilot production.

Products moving towards commercialisation include a lignin-derived SPF Booster for suncare applications, a cellulose-based rheology modifier and bio-derived Ferulic Acid for cosmetics and personal care formulations.

Abhinav Negi, Lead - Climate & Deep Tech at Rainmatter by Zerodha, said the company was unlocking industrial value by transforming India's agricultural residue into high-performance biochemicals.

Krishnakumar N, Managing Partner at Mela Ventures, said altM was addressing the challenge of developing materials that match the performance of fossil-derived inputs while changing their carbon source.

Yugal Raj Jain, Co-founder and COO, said the company was focusing on consistent manufacturing processes as production scales. Omnivore Partner Abhilash Sethi said altM had demonstrated the ability to translate scientific research into commercially scalable manufacturing.