Zerodha's Rainmatter Backs altM to Convert Farm Waste into Specialty Chemicals

altM, a Bengaluru-based startup, has raised $10.3 million in Series A funding led by Rainmatter by Zerodha and Mela Ventures.

Existing investors Omnivore, Theia Ventures, Aureolis Ventures, and Spectrum Impact also participated in the round.

Why This Funding Matters for Bio-Based Materials

The capital will support expansion of manufacturing capabilities, research and development, customer qualification, and team growth as altM shifts from pilot to commercial production.

Founded in 2022 by former Tesla executives Apoorv Garg and Yugal Raj Jain, altM converts agricultural residues such as sugarcane bagasse and rice straw into high-performance industrial chemicals.

This approach offers bio-based alternatives to fossil-derived materials for sectors like beauty and personal care, textiles, construction, packaging, and consumer goods.

Since its $3.5 million seed round in 2023, altM has built an integrated research and pilot facility in Bengaluru and scaled its lab footprint nearly five times while advancing six molecules to demonstration scale.

Longer-Term Impact on Indian Manufacturing and Farmers

One second-order effect is reduced reliance on imported petrochemicals, which could strengthen local supply chains for Indian manufacturers over the next 12 months.

Another angle involves potential new revenue streams for farmers by monetizing crop residue that might otherwise be burned, addressing air pollution patterns seen in past agricultural seasons.

Historical scaling challenges in bio-materials startups highlight the importance of this manufacturing-focused round for reaching viable commercial volumes.

Looking ahead, successful execution could accelerate adoption of sustainable inputs across multiple industries and set precedents for climate-focused deep tech in India.