altM Raises $10.3 Mn Series A to Scale Biomass Chemicals

From crop residue to specialty chemicals

Founded in 2022 by former Tesla executives Apoorv Garg and Yugal Raj Jain, altM turns lignocellulosic biomass, such as sugarcane bagasse and rice straw, into specialty chemicals and biomaterials. Its process uses cellulose, hemicellulose and lignin, so several products can come from a single feedstock, as an alternative to fossil-derived raw materials.

The first products nearing commercialisation are a lignin-derived SPF booster for suncare, a cellulose-based rheology modifier and bio-derived ferulic acid for cosmetics and personal care. The company is focused on beauty and personal care for now, while its R&D pipeline also covers construction, electronics, automotive, polymers and battery materials.

Since its $3.5 Mn seed round in 2023, altM has built an integrated R&D and pilot facility in Bengaluru, expanded its lab footprint nearly fivefold and moved six molecules to the demonstration stage, three of which were picked for pilot production. It has filed six patents in India and is working on a seventh. Garg says development time for new molecules has fallen from 12-15 months to under six.

What comes next

The 70-tonne-per-year pilot plant in Electronic City is installed and in pre-production, with certifications and validations under way ahead of production this month, according to Garg. The company expects to fulfil purchase orders this quarter and launch its first products in the next one. It works with nearly 30 personal care customers, of which 16-18 are in active testing and validation.

As the company shifts from lab work to sales, Garg said the biggest increase in spending will be on the sales team. altM aims to sell out pilot capacity by the first quarter of FY28 and to scale to 10,000 tonnes per year over five years, which could bring 100-200 Mn in annual revenue depending on the molecules produced.