Distil, a startup focused on specialty chemicals powered by technology, has attracted USD 3.1 million seed funding led by Jungle Ventures through First Cheque@Jungle initiative, with participation from India Quotient and other investors. The round was announced in June 2024 and provides fresh momentum to Distil as it attempts to change India’s role in the global specialty chemicals market.

Founding Team with Strong Credentials

Distil was co-founded in 2021 by Atanuu Agarrwal, Karan Hirani, and Viraj Shah, all graduates of IIT Bombay with backgrounds spanning finance, engineering, and chemical operations.

• Atanuu Agarrwal, Co-founder & CEO, previously co-founded Upside AI, a tech-driven investment firm. He now leads Distil’s vision of building a global R&D-led specialty chemicals company from India.
• Karan Hirani, Co-founder, plays a key role in product innovation and scaling Distil’s technology-enabled procurement platform.
• Viraj Shah, Co-founder & COO, manages operations, supply chain design, and regulatory compliance, ensuring customers receive reliable and consistent products.

Investors have pointed to the strength of this founding team, describing them as a rare mix of second-time founders and domain experts in finance, supply chain, and chemicals.

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Tackling Inefficiencies in the Market

India’s specialty chemicals industry is large but fragmented. Manufacturers frequently face inconsistent quality, long procurement lead times, and rigid minimum order sizes. Distil aims to remove these bottlenecks by offering:

• Customisable formulations developed through R&D partnerships.
• Tech-enabled procurement systems to streamline sourcing.
• Stock-point networks that improve delivery speed and consistency.

By leveraging India’s underutilised manufacturing capacity, the startup avoids the heavy capital expenditure associated with building new plants while ensuring scalability. This asset-light, R&D-first model allows Distil to focus on innovation rather than infrastructure.

How the Funds Will Be Utilized

The $3.1 million infusion will be allocated across four major areas:

1. Team Expansion: Building capabilities in R&D, procurement, technology, marketing, and sales. Distil has already attracted scientists and engineers to strengthen its technical bench.
2. Product Innovation: Developing proprietary formulations for life sciences applications such as flavours & fragrances, pharmaceuticals, food ingredients, and personal care.
3. Operational Strengthening: Enhancing procurement technology and warehouse infrastructure to reduce lead times and improve supply reliability.
4. International Expansion: Extending its footprint in North America, Europe, and the Middle East & North Africa (MENA), regions where demand for cost-efficient and reliable specialty chemicals is on the rise.

Investor Confidence and Industry Backing

Jungle Ventures, making its first seed investment in India under the First Cheque@Jungle programme, praised Distil’s approach of combining deep R&D with agile, asset-light operations. The firm believes this model can position Distil as a long-term leader in global specialty chemicals.

India Quotient and other early-stage investors echoed this sentiment, noting that the company’s rapid progress in building customer relationships and its strong founding team give it a significant advantage in the market.

Growing Competition in Specialty Chemicals

Distil is one of the newer startups that are changing the chemicals supply chain. Within the scope of the larger specialty chemicals market, Distil has competitors such as Scimplify, which raised $40 million in Series B funding in 2024, and Mstack, which raised $40 million in 2023. Like Distil, these companies are overcoming inefficient sourcing, manufacturing, and distribution models while developing their proprietary formulations.

The surge of venture capital investment demonstrates a burgeoning confidence in India’s opportunity to become a global hub for specialty chemicals innovation and exports.

Distil’s Vision

CEO Atanuu Agarrwal referred to the opportunity as “once-in-a-generation.” He expresses desire to “build a global R&D-focussed specialty chemicals leader out of India.” “Manufacturers everywhere are looking for supply chain resilience and bespoke solutions,” he said, adding, “Distil’s R&D focus is perfectly placed to meet this demand.“

The company’s developments will be under scrutiny as it advances its roadmap. If the company is successful, it could disrupt procurement and innovation in India’s chemicals ecosystem and enhance India’s opportunity as a competitive player internationally.

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