Mstack, a startup specializing in cross-border chemical manufacturing, has raised $40 million (₹335 crore) in a Series A funding round. The round was co-led by Lightspeed and Alphawave, with debt financing provided by HSBC Innovation Banking. The fresh capital will enable the company to scale its R&D capabilities in India and the Middle East and expand operations across North America, Latin America, and Asia.
Founded in 2022 by Shreyans Chopra, Mstack offers a custom manufacturing platform focused on specialty chemicals for mid-to-large enterprises. Unlike marketplaces, Mstack manufactures its own branded specialty chemicals, leveraging low-cost production hubs in countries such as India, Saudi Arabia, Korea, Thailand, and Vietnam. The startup aims to expand into sectors like agrochemicals and pharmaceuticals, in addition to its current focus on oil and gas, water treatment, coatings, and personal care products.
Mstack’s business model is centered on simplifying fragmented supply chains by sourcing from family-owned manufacturers in emerging markets. Its operations have experienced a 15X growth over the past year, with the company achieving profitability in the June quarter of FY25. While revenue figures remain undisclosed, Mstack’s growth positions it as a significant player amid increasing demand for specialty chemicals in global markets facing geopolitical risks.
With the new funding, Mstack will enhance its in-house R&D lab, which currently contributes 20% of its revenue from customized chemicals and intellectual property-driven products. The company also plans to deepen its penetration into global markets by addressing supply chain disruptions and innovating within the specialty chemicals industry.
Mstack competes with firms like Scimplify, which raised $9.5 million in 2023, and Distil, which secured $3.1 million in the same year. The global specialty chemicals market, valued at $800 billion in 2023, is projected to grow to $1.04 trillion by 2029, offering immense growth opportunities for companies like Mstack.
Key Highlights:
- $40 Million Raised: Mstack secures funding to scale R&D and expand into agrochemicals and pharmaceuticals.
- 15X Growth: The startup achieved rapid growth and profitability in the June quarter of FY25.
- Global Market Expansion: Mstack is targeting expansion in North America, Latin America, and Asia amidst rising demand for specialty chemicals.