altM Raises $10.3M Series A to Turn Farm Waste Into Specialty Chemicals
The short answer
altM, a Bengaluru cleantech that turns agricultural residue into specialty chemicals, raised $10.3 million in Series A funding led by Rainmatter by Zerodha and Mela Ventures. Existing backers Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact also participated. The company will use the money to expand manufacturing, R&D and customer qualification as it moves from pilot production toward a commercial plant, according to The Hindu Business Line and Inc42 reporting on 5 November 2026.
This is a deep-tech climate bet: replace fossil-derived industrial inputs with carbon from sugarcane bagasse, rice straw and other lignocellulosic biomass — not another consumer app story.
What altM builds
Founded in 2022 by former Tesla manufacturing leaders Apoorv Garg (co-founder and CEO) and Yugal Raj Jain, with bioprocessing scientist Harshad Velankar later joining as Chief Scientific Officer, altM develops specialty chemicals and biomaterials from farm residue.
Its platform breaks lignocellulosic biomass into cellulose, hemicellulose and lignin fractions, then upgrades those fractions into materials for beauty and personal care, textiles, industrial chemicals, construction, packaging and consumer goods. The pitch is a single feedstock yielding multiple products — an industrial carbon source that is not oil.
The funding: who wrote the cheque
Rainmatter’s Abhinav Negi framed the bet as “re-wiring foundational supply chains away from fossil-derived inputs.” Mela Ventures’ Krishnakumar N said the firm invests at the inflection point for environmentally friendlier materials that still match fossil performance.
Garg told Inc42 the capital has three near-term jobs: convert pilot capacity into revenue, fund a 1,000-tonne-per-year commercial plant targeted for 2028, and expand sales. Over five years the company aims for 10,000 tonnes per year of capacity.
From lab to pilot in Bengaluru
Since the seed round, altM has built an integrated R&D and pilot manufacturing facility in Bengaluru. Hindu Business Line and Inc42 report that in under two years the company:
expanded its laboratory footprint nearly fivefold
commissioned a demonstration manufacturing facility
advanced six molecules to demonstration scale, with three selected for pilot production
finished installing a 70-tonne-per-year pilot plant in Electronic City (pre-production as of the funding announcement)
filed six patents in India on deconstruction and molecule-upgrade processes, with a seventh in progress
First products moving toward commercialisation include a lignin-derived SPF booster for suncare, a cellulose-based rheology modifier, and bio-derived ferulic acid for cosmetics and personal care. The company said it works with nearly 30 beauty and personal care customers at various stages; about 16–18 are in testing and validation.
Timeline
2022: Founded by Apoorv Garg and Yugal Raj Jain.
2023: Raises $3.5M seed; begins integrated R&D and pilot build-out in Bengaluru.
2025–2026: Installs 70 tpa pilot plant in Electronic City; six molecules at demo scale.
5 Nov 2026: Announces $10.3M Series A led by Rainmatter and Mela Ventures.
Near term: First product launches planned the quarter after funding; purchase-order fulfilment from the pilot.
2028 target: 1,000 tpa commercial plant.
~5-year ambition: Scale toward 10,000 tpa capacity.
Why it matters
India generates enormous volumes of crop residue. Much of it is burned, adding to air pollution, or left as low-value waste. Converting bagasse and rice straw into performance chemicals that can displace petrochemicals links two policy priorities: cleaner air and industrial decarbonisation.
For Rainmatter — Zerodha’s climate and deep-tech vehicle — and for Omnivore’s agritech thesis, altM sits at the intersection of farm waste, materials science and manufacturing scale. The hard part is not a pitch deck. It is matching fossil-grade performance at a price customers will pay, then proving it in certifications and purchase orders.
Lessons for founders and investors
Deep tech needs patient capital past the lab. Seed paid for the pilot; Series A pays for commercial manufacturing and a sales team.
Beauty and personal care is a smart first beachhead. SPF boosters and ferulic acid have clear product specs and brand willingness to pay for “bio-derived” claims — if performance holds.
Multi-product platforms from one feedstock improve unit economics only if all three biomass fractions find buyers.
Patent and process speed matter. Cutting molecule development from 12–15 months to under six months (per Garg to Inc42) is a competitive claim investors will diligence.
Frequently asked questions
How much did altM raise in Series A?
$10.3 million (about ₹97.5 crore), led by Rainmatter by Zerodha and Mela Ventures, with existing investors participating.
What does altM make from farm waste?
Specialty chemicals and biomaterials — including a lignin-derived SPF booster, a cellulose rheology modifier and bio-derived ferulic acid — from bagasse, rice straw and other lignocellulosic residue.
Who founded altM?
Former Tesla manufacturing leaders Apoorv Garg and Yugal Raj Jain founded the company in 2022; Harshad Velankar later joined as CSO.
Is altM already selling commercially?
As of the November 2026 announcement it was in pre-production on its 70 tpa pilot, with first product launches planned shortly after and a 1,000 tpa commercial plant targeted for 2028.
Who else has invested?
Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact joined the Series A after backing the seed.
Related reading on Page Twenty One
Sources
The Hindu Business Line (5 Nov 2026) funding announcement and founder quotes; Inc42 (5 Nov 2026) Series A details, plant targets, pilot status, customer pipeline and patent counts; Business Standard and YourStory contemporaneous coverage. Last updated November 2026.
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