Chemical Producing Startup Mstack Secures $40 Mn from Lightspeed and Alphawave

Mstack, a cross-border specialty chemical manufacturing platform, has raised $40 million in a Series A fundraising round led by Lightspeed and Alphawave, as well as a debt from HSBC Innovation Banking.

Mstack said in a news release that the revenues will be used to expand into the Middle East, Latin America, and Asia, as well as to strengthen its foothold in the United States and other major markets.

MStack intends to commercialize multiple patented compounds and formulations within the next 12-18 months, opening up new income prospects in the chemical sector.

According to Reuters, the Bengaluru and Houston-based startup will be valued between $90 and $100 million.

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Shreyans Chopra founded Mstack in 2022, and it provides a full-stack solution for acquiring specialty chemicals via a dependable supply chain that is resistant to geopolitical upheavals. This allows for preferential pricing, high quality, dependability, and consistency, according to the announcement.

The company presently offers four product categories: oil and gas, coatings, water treatment, and home and personal care.

Mstack is currently planning to expand into agrochemicals and pharmaceuticals. With the new funds, the company plans to acquire personnel across many functions, including R&D.

The specialty chemicals sector has experienced tremendous investment in 2024, with numerous well-known businesses achieving progress. Scimplify just raised $9.5 million in a Series A fundraising round headed by Omnivore.

Atomgrid, headquartered in Bengaluru, raised $1.2 million in a seed round led by Merak Ventures in May.

Meanwhile, Distil raised $3.1 million in a seed round from Jungle Ventures and India Quotient in June. Furthermore, Covvalent raised $4.3 million in November 2022, sponsored by Nexus Venture Partners.