Specialty Chemicals Startup Distil Raises $7.7 Million in Series A Funding

Mumbai, September 2025 — Homegrown specialty chemicals startup Distil has raised $7.7 million in Series A funding, a move that underscores rising investor confidence in India’s fast-growing chemicals sector. The round was led by Singapore-based Jungle Ventures and UAE’s CE-Ventures, the corporate venture arm of Crescent Enterprises.

Strategic investors including Rubamin, PI Industries Vice Chairperson Mayank Singhal, and India Quotient also participated in the round. With this raise, Distil’s total funding now stands at $10.8 million, following a $3.1 million seed round secured last year through Jungle Ventures’ First Cheque@Jungle platform.

Funding to Drive R&D and International Growth

The newly secured capital will support Distil’s research and development (R&D) expansion, strengthen its global procurement and technical sales, and aid its push into international markets across the Middle East, Africa, and North America.

Distil also plans to acquire underutilised chemical plants to scale up its production capacity. Over the next five years, the company aims to increase output fivefold, while maintaining its R&D-first, asset-light model.

This strategy reflects a growing trend among Indian specialty chemical startups to leverage the country’s underutilised infrastructure while keeping capital expenditure low.

Distil’s Founding Story and Vision

Founded in 2021 by Atanu Agarrwal and Viraj Shah, Distil develops advanced specialty chemicals including wetting agents, binders, titanium dioxide, and emulsions. These products are widely used in paints, plastics, and construction materials, making them vital to India’s manufacturing and infrastructure ecosystem.

From its inception, Distil has emphasized an R&D-led, asset-light model that enables it to scale production by collaborating with existing manufacturers rather than building heavy-capital plants. This approach not only reduces costs but also allows the startup to focus on innovation and speed-to-market.

“We founded Distil to build a global institution in specialty chemicals from India,” said Atanu Agarrwal, Co-founder and CEO. “Our vision is to harness India’s world-class manufacturing capabilities, technical talent, and rising global importance to compete head-to-head with the world’s leading chemical majors.”

Rapid Growth in Just Four Years

Since its founding, Distil has scaled from pre-revenue to $7 million in annual sales, serving over 100 enterprise customers. Its 19-member R&D and engineering team has been central to this growth, enabling the startup to rapidly innovate and customize solutions for industries.

Viraj Shah, Co-founder and COO, highlighted the importance of investor partnerships in scaling faster: “This round brings us investors who understand chemicals deeply and share our belief in an R&D-led, asset-light model. Their partnership strengthens our ability to scale, innovate continuously, and move closer to our ambition of becoming a trusted global partner by 2030.”

Investor Confidence in India’s Chemicals Sector

India’s specialty chemicals sector has emerged as a global bright spot, supported by favourable government initiatives, cost competitiveness, and sectoral tailwinds such as demand for sustainable solutions and supply chain diversification away from China.

“From our very first meeting, we were impressed by Atanu and Viraj’s clarity of vision and the pace of their execution,” said Sudarshan Pareek, Senior Vice President at CE-Ventures. “Their R&D-led, asset-light model can position Distil as a new benchmark for how Indian innovators can compete globally, and we are excited to support Distil in building an internationally competitive platform.”

Global Strategy and Market Potential

With the Series A funding, Distil plans to significantly expand its presence across Middle Eastern, African, and North American markets, targeting industries where demand for high-performance specialty chemicals is surging.

Its strategy includes:

Expanding international procurement networks to secure raw materials at competitive rates.

Building technical sales teams focused on customer engagement and product development.

Exploring acquisitions of idle plants to increase production efficiency without heavy capital investments.

This model allows Distil to scale quickly, reduce time-to-market, and strengthen its position as a cost-competitive, globally relevant specialty chemicals provider.

Distil’s Edge: R&D-First and Asset-Light

Unlike traditional chemical giants that rely on large-scale, capital-intensive facilities, Distil’s asset-light model prioritizes R&D and partnerships. This gives the company several competitive advantages:

Agility: Ability to adapt quickly to evolving market demands.

Scalability: Flexibility to ramp up production without massive fixed costs.

Innovation: Strong focus on continuous R&D-driven product development.

Sustainability: Efficient use of underutilised resources, reducing waste and capital intensity.

This approach is increasingly seen as a template for India’s next wave of specialty chemical companies.

Future Outlook

Looking ahead, Distil’s ambitions are clear:

Scale fivefold in output over the next five years.

Expand R&D operations, focusing on developing high-value products for global markets.

Strengthen global partnerships, positioning itself as a trusted supplier to multinational corporations.

Build a global brand for Indian specialty chemicals, with an eye on becoming a top international player by 2030.

With strong investor backing, rapid revenue growth, and a differentiated business model, Distil is well on its way to becoming a flagbearer for India’s specialty chemicals sector on the global stage.

Conclusion

Distil’s $7.7 million Series A raise, led by Jungle Ventures and CE-Ventures, marks a turning point not only for the company but also for India’s evolving role in the global chemicals market. By combining innovation, speed, and scalability, Distil is setting a new standard for how Indian startups can compete in industries long dominated by global majors.

Its R&D-driven approach, lean model, and strategic expansion plans position it as a next-generation chemical powerhouse, with the potential to become a global benchmark by 2030.

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