Bengaluru‑based cleantech startup altM announced a $10.3 million Series A round led by Rainmatter and Mela Ventures, with participation from existing backers Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact.
Key takeaways
- Funding target: The capital will fund a 1,000‑tonne‑per‑year commercial manufacturing facility slated for completion by 2028.
- Sales push: A significant portion of the money will expand altM’s sales team and pipeline.
- R&D focus: The startup will continue developing specialty chemicals and biomaterials from agricultural residues.
- Pilot plant status: altM has installed a 70‑tonne‑per‑year pilot plant in Electronic City and is moving toward pre‑production certification.
- Product pipeline: Early commercial products include a lignin‑derived SPF booster, a cellulose rheology modifier and bio‑derived ferulic acid for cosmetics.
Funding and expansion plans
AltM co‑founder and CEO Apoorv Garg told Inc42 that the round will enable the company to convert pilot‑plant revenue into a broader sales pipeline and to finance the construction of the larger plant. “We have three large focus areas for the company today. In the short term, we want to start converting revenues and building our sales pipeline from the pilot plant,” Garg said.
Technology and market scope
Founded in 2022 by former Tesla executives Garg and Yugal Raj Jain, altM converts lignocellulosic biomass such as sugarcane bagasse and rice straw into multiple high‑value products. The platform extracts cellulose, hemicellulose and lignin to replace fossil‑derived raw materials in sectors including beauty and personal care, textiles, construction and packaging.
Progress since seed round
AltM raised $3.5 million in a seed round in 2023. Since then it built an integrated R&D and pilot manufacturing hub in Bengaluru, expanded laboratory space nearly fivefold and advanced six molecules to demonstration stage, three of which entered pilot production. The company has completed installation of its 70‑tonne‑per‑year pilot plant and is seeking certifications before commercial launch.