Bengaluru-based cleantech startup altM has raised $10.3 million (approximately ₹97.5 crore) in a Series A funding round led by Rainmatter and Mela Ventures, as it prepares to move its agricultural-waste-based chemicals from pilot production to commercial manufacturing.
The round also saw participation from existing investors Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact, along with strategic angel investors.
Founded in 2022 by former Tesla executives Apoorv Garg and Yugal Raj Jain, altM develops specialty chemicals and biomaterials using agricultural residues such as sugarcane bagasse and rice straw. The startup plans to use the fresh capital to expand manufacturing, strengthen research and development (R&D), build its sales pipeline and support customer qualification programmes.
A significant portion of the investment will go towards establishing a commercial manufacturing facility with an annual capacity of 1,000 tonnes by 2028.
altM Targets Commercial Production After Pilot Plant Setup
The funding comes as altM prepares to transition from laboratory research and demonstration production to commercial operations.
The company has completed the installation of a 70-tonne-per-year pilot plant in Bengaluru’s Electronic City and is preparing to begin production after completing the required certifications and customer validations.
It expects to start fulfilling purchase orders in the current quarter, with its first product launches planned for the following quarter, according to co-founder and CEO Apoorv Garg.
altM currently works with nearly 30 beauty and personal care (BPC) customers at different stages of development and commercialisation. Around 16-18 customers are involved in testing and active validation.
The startup’s first products moving towards commercialisation include a lignin-derived SPF booster for suncare, a cellulose-based rheology modifier and bio-derived ferulic acid for cosmetics and personal care formulations.
Turning Agricultural Residue Into Industrial Chemicals
altM’s technology processes lignocellulosic biomass by separating its major components — cellulose, hemicellulose and lignin - and converting them into materials for industrial applications.
The platform is designed to extract multiple products from a single feedstock, creating alternatives to conventional fossil-derived raw materials.
While beauty and personal care is its immediate commercial focus, the startup’s research pipeline also covers textiles, construction, electronics, automotive, polymers and battery materials.
Since raising $3.5 million in a seed round in 2023, altM has established an integrated R&D and pilot manufacturing facility in Bengaluru. It has expanded its laboratory footprint nearly fivefold, advanced six molecules to the demonstration stage and selected three for pilot production.
The company has also conducted more than 15,000 laboratory-stage reactions and translated over 500 reactions to the demonstration stage. It has filed six patents in India covering its biomass deconstruction technology and processes for upgrading individual molecules, Garg said.
altM Plans 10,000-Tonne Annual Capacity In Five Years
Beyond the proposed 1,000-tonne commercial facility, altM aims to expand its manufacturing capacity to 10,000 tonnes per year over the next five years.
It also wants to sell out the capacity of its existing pilot plant by the first quarter of FY28.
The next phase will test whether the startup can translate its technology into commercially viable products at consistent quality, cost and scale. Securing customer approvals and building reliable supply chains for agricultural feedstock will be important as it moves beyond pilot production.
For India's cleantech manufacturing ecosystem, altM's progress highlights an emerging opportunity to convert agricultural residue into higher-value industrial inputs rather than treating it only as waste.
