CE-Ventures, the corporate venture capital arm of Crescent Enterprises, announced its involvement in a $7.7 million Series A funding round for Distil, an India-based specialty chemicals company focused on research and development.
The funding round was spearheaded by CE-Ventures and Singapore’s Jungle Ventures, with contributions from strategic investors such as Rubamin, PI Industries Vice Chairperson Mayank Singhal, and India Quotient. This brings Distil’s total funding to $10.8 million.
Founded by Atanu Agarrwal and Viraj Shah, Distil addresses inefficiencies in the chemical industry’s value chain. India hosts numerous small and mid-sized plants operating below full capacity, with limited in-house R&D or technical sales. Distil collaborates with these manufacturers, enhancing their expertise and supplying high-quality chemicals that rival global leaders while remaining cost-effective. Their product range includes wetting agents, binders, titanium dioxide, and emulsions used in various sectors like paints, plastics, and construction.
“CE-Ventures sees immense potential in India’s specialty chemicals sector, driven by strong market trends, competitive costs, and supportive government policies. We were impressed by Atanu and Viraj’s clear vision and swift execution from our first meeting. Their R&D-driven, asset-light model sets a new standard for Indian innovators to compete globally. We are thrilled to support Distil in building an internationally competitive platform,” stated Sudarshan Pareek, Senior Vice President at CE-Ventures.
“We founded Distil to establish a global institution in specialty chemicals from India,” said Atanu Agarrwal, Co-founder & CEO of Distil. “Our vision is to leverage India’s superior manufacturing capabilities, technical expertise, and growing global importance to compete directly with leading chemical companies worldwide.”
The global specialty chemicals market exceeds $800 billion, growing at over 6% CAGR. India’s growth surpasses the global average, with exports increasing at 18%+ CAGR due to shifts in production from China to India. Distil aims to capitalize on this shift, utilizing its R&D-led, asset-light model to partner with underutilized domestic plants and transform them into globally competitive hubs.
“When we initially partnered with Distil at the seed stage through First Cheque@Jungle, we recognized a team poised to navigate one of the most significant supply chain shifts of our time,” said Rishab Malik, Partner, Seed investments at Jungle Ventures. “In just over a year, they have developed R&D depth and market credibility in segments like paints & coatings and flavors & fragrances, and are already expanding into international markets such as the US and Middle East.”
Sudarshan Pareek, Senior Vice President at CE-Ventures
The company aims to achieve $25-30M in revenue and reach breakeven within the next year, laying the groundwork for long-term growth. Over the next five years, it plans to acquire underutilized plants, increase their output fivefold, and diversify its product offerings. The new funds will also support R&D expansion, global procurement, and technical sales, helping Distil establish operations in the Middle East, Africa, and North America.
Viraj Shah, Co-founder & COO of Distil, added: “This funding round brings us investors deeply knowledgeable in chemicals and supportive of our R&D-led, asset-light model. Their partnership enhances our ability to scale quickly, innovate continuously, and move closer to our goal of becoming a trusted global partner by 2030.”
The financing introduces investors with extensive experience in chemicals and manufacturing, aiding Distil in expanding R&D and scaling international operations. Strategic investors include Rubamin, a leading chemicals company from Gujarat, and Mayank Singhal, Vice Chairperson & Managing Director of PI Industries, a global leader in agrochemicals CDMOs.
This funding follows the startup’s $3.1 million seed round led by Jungle Ventures through First Cheque@Jungle, a platform for partnering with second-time founders and seasoned operators. Since then, Distil has grown from pre-revenue to $7M in annual sales, serving over 100 enterprise customers and building a team of 19 scientists and engineers.
