Funding Boost: Strategic Backers Fuel Expansion
Mumbai-based Distil Datalabs Pvt. Ltd., a trailblazer in customizable specialty chemical solutions, has clinched $7.7 million (approximately ₹64.6 crore) in its Series A round, co-led by Jungle Ventures and UAE-headquartered CE-Ventures. The syndicate also includes recycling powerhouse Rubamin Pvt. Ltd., PI Industries’ Vice Chairperson Mayank Singhal, and returning investor IndiaQuotient. This infusion elevates Distil’s total capital raised to $10.8 million, signaling robust confidence in its asset-light, innovation-driven model amid India’s chemical sector resurgence.
Announced on September 23, 2025, the round attracts domain experts who bring deep manufacturing and recycling insights, positioning Distil to capitalize on the “China+1” manufacturing shift, where India’s chemical exports have surged at over 18% CAGR.
Company Origins: Bridging Innovation and Efficiency
Launched in 2023 by Viraj Shah (COO) and Atanu Agarrwal, Distil addresses critical gaps in the specialty chemicals value chain by offering end-to-end services—from R&D and formulation to manufacturing, supply chain logistics, and regulatory compliance. Targeting high-growth sectors like aromas and flavors, beauty and personal care, pharmaceuticals, coatings, and adhesives, the startup collaborates with underutilized small- and mid-sized plants to transform them into efficient, globally competitive facilities.
With a lean team of 19 scientists and engineers, Distil already supports over 100 enterprise clients, delivering tailored solutions that enhance product efficacy while minimizing environmental impact. Its prior $3.1 million seed round in 2024, also co-led by Jungle Ventures and IndiaQuotient, focused on building core talent, setting the stage for this accelerated growth phase.
Capital Deployment: R&D Ramp-Up and International Foray
The fresh funds will supercharge Distil’s R&D capabilities, enabling faster iteration on bespoke formulations and sustainable processes. A key thrust involves acquiring and upgrading underutilized domestic plants to boost output up to fivefold, alongside expanding global procurement and technical sales networks.
Geographically, Distil eyes a bold entry into the Middle East, Africa, and North America within the next year, forging partnerships to localize production and tap emerging markets. “This capital unites us with backers who grasp the nuances of chemicals and champion our R&D-centric, asset-light approach. Their expertise will propel us toward innovation at scale and our goal of emerging as a premier global ally by 2030,” stated Viraj Shah.
Currently generating $7 million in annual revenue, Distil projects $25-30 million by fiscal 2026, with breakeven on the horizon— a testament to its operational agility in a capital-intensive industry.
Market Momentum: India’s Specialty Chemicals Ascendancy
The global specialty chemicals arena, valued at $4.7 trillion and led by China’s 32% share, presents a fertile opportunity for India, which commands a 4.3% slice as the world’s fifth-largest player. With production relocating from China amid geopolitical tensions and sustainability mandates, Indian innovators like Distil are primed to elevate the nation’s footprint.
This funding wave mirrors sector-wide enthusiasm: Scimplify Innotech Pvt. Ltd. garnered $40 million in Series B earlier in 2025 from Accel and Bertelsmann Investments for its B2B sourcing and manufacturing platform. Mstack Technologies Pvt. Ltd. followed suit with $40 million in 2024 for cross-border manufacturing. Emerging players like Atomgrid Technologies Pvt. Ltd., Elchemy Inc., and AltiusHub Technologies Pvt. Ltd. have also secured investments to streamline supply chains, underscoring investor appetite for tech-enabled disruption in this $200 billion-plus Indian market.
Forward Outlook: Pioneering Sustainable Chemical Innovation
Distil’s trajectory embodies the entrepreneurial spirit reshaping India’s chemical landscape—leveraging local talent, global trends, and strategic alliances to drive inclusive growth. As it scales, the startup not only promises profitability but also sustainable practices that align with India’s green manufacturing ambitions. For founders eyeing this space, Distil’s playbook highlights the power of niche expertise and agile partnerships in unlocking trillion-dollar opportunities.
Last Updated on Tuesday, September 23, 2025 2:54 pm by The Entrepreneur Today Desk
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