Specialty chemicals startup Mstack Chemicals has secured $40 million in a Series A funding round, as it looks to expand its operations beyond the United States.
The cross-border platform said existing backer Lightspeed Venture Partners and Alpha Wave Global co-led the round, which also included a debt facility from HSBC Innovation Banking. This is one of the largest Series A rounds in recent months by an India-related startup.
The company, which is headquartered in Houston and has an office in Bengaluru, offers companies a platform to source bespoke chemicals. It currently offers products in four categories: oil and gas, coatings, water treatment, and home and personal care. With this round of funding, Mstack is entering the agrochemicals and pharmaceuticals segments.
MStack said in a statement it plans to use the fresh capital to fund research and development in chemicals and expand business across the Middle East, Latin America, and Asia. It is launching R&D laboratories in India and the Middle East and aims to commercialise several proprietary molecules in the next 12-18 months.
"Future plans include establishing advanced labs to drive innovation and IP creation, while offering custom formulations and process innovation through our on-demand platform,” said Shreyans Chopra, founder and CEO at Mstack. Prior to founding the company in 2022, Chopra worked at Lightspeed and Boston Consulting Group for five years.
Explaining the rationale behind investing in Mstack, Lightspeed partner Bejul Somaia said geopolitical dynamics posed risks for supply chain disruptions in the global specialty chemicals market. “With demand for these chemicals growing rapidly, there is a need to increase R&D investments and unlock new pockets of supply,” Somaia added.
