Distil plans to use the funds to the expand its teams across sales, R&D, technical/procurement, marketing, and technology development
A portion of the proceeds have also been earmarked for the development of proprietary products in the life sciences segment
Founded in 2023, Distil offers fully customisable and scalable solutions to manufacturers through a tech-enabled platform for procurement of specialty chemicals
Specialty chemicals startup Distil has raised $3.1 Mn (about INR 26 Cr) in a seed funding round co led by Jungle Ventures and IndiaQuotient, along with participation from other undisclosed investors.
The Mumbai-based company will deploy the fresh capital for team expansion across sales, research and development, technical/procurement, marketing and technology development.
Apart from this, the proceeds will also be used for development of proprietary products in the life sciences segment, including flavours and fragrances, food ingredients, pharmaceuticals and personal care.
Founded in 2023 by Atanuu Agarrwal, Karan Hirani and Viraj Shah, Distil offers fully customisable and scalable solutions to manufacturers through a tech-enabled platform for procurement of specialty chemicals.
Distil claims to be on a mission to address challenges facing the specialty chemicals industry such as fragmentation with multiple intermediaries, unreliable quality, long lead times, minimum order quantities and lack of alternatives.
The startup also claims its platform provides a seamless purchasing process, ensuring consistent product quality, meeting quantity requirements, and reducing lead times and MOQs through a robust network of stock points across the country.
It counts Oriental Aromatics, Gem Aromatics Limited and Privi Speciality Chemicals Limited among its portfolio clients.
The company aims to cater to the Indian and overseas markets, including the US, European Union, the Middle East and North African (MENA) region.
Rishabh Malik, partner at Jungle Ventures, said, “Their focus on solving supply chain challenges through R&D and technology aligns perfectly with our investment philosophy. The founding team is exceptionally strong, with a mix of a second time founder and seasoned operators with over 15 years of experience in the specialty chemicals domain.”
This comes at a time when India is emerging as a global manufacturing hub across key sectors such as automotive, engineering, chemicals, pharmaceuticals and consumer durables.
Pushing for ‘Aatmanirbhar Bharat’, the government has launched production-linked incentives for 14 key sectors with a total outlay of INR 1.97 Lakh Cr. These sectors include mobile manufacturing, drug intermediaries, medical devices, automobiles and auto parts and pharmaceuticals, among others.
However, a significant portion of the funds is still untapped, and the government is reportedly contemplating extending the benefits to the chemical sector, including agrochemical and pharma intermediaries.
As per a report, India’s chemical sector, which had an estimated market size of $220 Bn in 2022, is poised to grow to $300 Bn by 2025 and $1 Tn by 2040.
