Cleantech startup altM has closed a $10.3 million Series A funding round led by investors including Rainmatter and Mela Ventures to accelerate commercial manufacturing and broaden its specialty chemical and biomaterial offerings from agricultural residues.
- $10.3M Series A led by Rainmatter and Mela Ventures
- Plans 1,000-tonne/year commercial plant by 2028
- Targeting beauty, personal care, textiles, and construction segments
What happened
India-based cleantech startup altM raised $10.3 million in a Series A funding round led by new investors Rainmatter and Mela Ventures, with participation from existing backers such as Omnivore and Theia Ventures. The Bengaluru startup plans to deploy these funds toward scaling manufacturing capabilities, enhancing its sales pipeline, and furthering research and development efforts.
altM, founded in 2022 by former Tesla executives Apoorv Garg and Yugal Raj Jain, specializes in converting agricultural residues like sugarcane bagasse and rice straw into specialty chemicals and biomaterials. The startup aims to commission a 1,000-tonne-per-year commercial manufacturing plant by 2028 and has recently completed installation of a 70-tonne pilot plant with production expected to begin imminently.
Why it matters
altM’s technology uses lignocellulosic biomass to create multiple industrial products such as lignin-derived SPF boosters for suncare, cellulose-based rheology modifiers, and bio-derived acids for cosmetics. This approach offers sustainable alternatives to fossil-based raw materials in key industries including beauty and personal care, textiles, construction, and packaging.
The startup’s ability to accelerate molecule development from over a year to under six months demonstrates strong R&D efficiency and market readiness. Its integrated R&D and pilot manufacturing facility in Bengaluru allows rapid scale-up from lab to demonstration production, positioning altM to address growing demand for green chemicals in India’s expanding cleantech and circular economy markets.
What to watch next
altM plans to ramp up sales efforts following this funding, targeting nearly 30 customers primarily in the beauty and personal care segment while expanding into other industries. The company expects to deliver its first commercial products in the coming quarters and aims to fully utilize its pilot plant capacity by early fiscal 2028.
Looking further ahead, altM intends to increase manufacturing capacity to 10,000 tonnes per year over five years, potentially generating $100-200 million in revenue depending on the products developed. The startup is also working on international patent protections for its proprietary lignocellulosic biomass conversion technologies, underscoring its ambitions to grow beyond the Indian market.