Speciality Chemicals Startup Distil Raises $7.7 Mn To Scale R&D

Speciality chemicals startup Distil has raised $7.7 Mn (around INR 68.3 Cr) in its Series A funding round co-led by Jungle Ventures and UAE’s CE-Ventures. The funding round also saw participation from recycling company Rubamin, PI Industries vice chairperson Mayank Singhal, and its existing investor IndiaQuotient. 

The Mumbai-based startup aims to deploy the capital to enhance its research and development and expand its global footprint by commencing operations in the Middle East, Africa, and North America.

“This round brings us investors who understand chemicals deeply and share our belief in an R&D-led, asset-light model. Their partnership strengthens our ability to scale faster, innovate continuously, and move closer to our ambition of becoming a trusted global partner by 2030,” Distil founder and chief operating officer Viraj Shah said.

Founded by Shah and Atanu Agarrwal in 2023, Distil offers customisable chemical solutions including research, formulation, manufacturing, supply chain and compliance services. The startup claims to serve sectors like aroma and food, beauty and personal care, pharmaceuticals, coating, adhesives and more. 

Distil partners with small and mid-sized plants for research, development and facilitating supply chain services. It claims to serve more than 100 enterprise customers with a 19-member team of scientists and engineers.

Prior to this, the startup raised $3.1 Mn in its seed funding round last year, which was co-led by Jungle Ventures and IndiaQuotient. Back then, it said it would utilise the funds for talent acquisition. 

With the latest funding round, Distil has raised $10.8 Mn to date.

Distil claims to have an annual revenue of $7 Mn currently and aims to reach $25 Mn to $30 Mn revenue and achieve breakeven in the next 12 months. 

As per a report by Finnovate, the global speciality chemical market, which is currently valued at $4.7 Tn, is dominated by China with a 32% market share. India holds a 4.3% market share, ranking fifth globally. 

A number of Indian startups are working to tap this global market and increase India’s market share. These startups are being backed by investors who are looking to cash in on this opportunity.

Earlier this year, Scimplify raised $40 Mn in its Series B funding round co-led by Accel and Bertelsmann Investments. It is a B2B platform that specialises in end-to-end sourcing and manufacturing of speciality chemicals. 

Similarly, cross-border speciality chemical manufacturing platform Mstack also raised $40 Mn last year. Other startups in the segment like Atomgrid, Elchemy and AltiusHub have also raised funds to offer supply chain solutions for the Indian chemical industry.