altM raises $10.3M to turn farm waste into fossil-free chemicals
What's the deal? Specialty chemicals startup altM has raised $10.3 million in a Series A round co-led by Rainmatter by Zerodha and Mela VenturesDealroom has a profile for this one. Try Dealroom →. Existing backers Omnivore, Theia VenturesDealroom has a profile for this one. Try Dealroom →, Aureolis VenturesDealroom has a profile for this one. Try Dealroom →, and Spectrum ImpactDealroom has a profile for this one. Try Dealroom → also joined, alongside strategic angel investors.
What's the endgame? Founded in 2022 by former Tesla executives Apoorv Garg and Yugal Raj Jain, the Bengaluru company converts lignocellulosic biomass — sugarcane bagasse and rice straw — into industrial chemicals. It extracts cellulose, hemicellulose, and lignin from a single feedstock to make bio-based alternatives for beauty, textiles, construction, and packaging.
Why now? The money funds altM's move from pilot-scale to commercial manufacturing. It plans a 1,000-tonne-a-year plant by 2028, with a longer-term target of 10,000 tonnes. The round also fits India's BioE3 policy, which pushes bio-based chemicals and the use of agricultural residues over fossil-derived inputs.
Since a $3.5 million seed round in 2023, altM has taken six molecules to demonstration scale, picking three for pilot production. Products being readied for market include a lignin-derived SPF booster for suncare, a cellulose-based rheology modifier, and bio-derived ferulic acid for cosmetics.
"We are building a new source of industrial carbon from agricultural residue," said Garg, co-founder and chief executive officer.
What could go wrong? The new plant is a milestone, not proof of commercial viability. altM's success hinges on securing reliable biomass supplies and winning customers for products that must match fossil-derived inputs on cost and performance.
The signal: At $10.3 million, the round sits in the upper tier of its peer group by size. For investors, it is a bet that India can re-wire foundational supply chains away from fossil carbon — a hard, capital-heavy problem where the leap from lab to reliable manufacturing remains the industry's toughest test.
Read more: yourstory.com
Image credit: Starr Environmental
