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Mstack, a specialty chemicals startup, is targeting a $100 million Series B fundraise, CEO Shreyans Chopra tells Axios Pro exclusively.

Why it matters: The Houston-based startup has begun receiving inbound interest from investors and plans to close a deal by the end of the year.

How it works: The startup automates experimentation and feedback processes with a set of custom chemistry transformers called Mstack AI.

Its commerce business sells the off-patent chemicals it creates to its more than 100 enterprise customers.

Catch up quick: Founded in 2022, Mstack raised a $40 million Series A led by Lightspeed Venture Partners and Alpha Wave Global last October.

The company was valued between $90 million and $100 million following the Series A raise, Reuters reported.

Zoom in: Customers include Baker Hughes and ChampionX in the U.S. and some of India's largest agrochemicals companies, Chopra says.

It has about 100 employees and uses small, contracted manufacturing facilities in the U.S., India, Indonesia, South Korea and Saudi Arabia.

State of play: Industrial coatings, resins and agrochemicals are among the largest global chemical markets.

Yes, but: Most R&D dollars go toward discovering new materials rather than finding more efficient, less expensive ways to create existing ones.

What they're saying: "We are not into material innovation, so we are not discovering new materials," Chopra says. "We are into process innovation, which is figuring out novel ways of making existing off-patent materials."

"In a $5 trillion industry, you don't have a single $100-billion-dollar business, and that's surprising," the CEO says. "The reason for this fragmentation is this process chemistry."

"If the U.S. has to become self-reliant, it's not only about setting up capacities," he adds. "You also need the process of making those chemicals at a significant cost arbitrage."

By the numbers: The startup says it has reduced chemical synthesis timelines from up to two years to a matter of days.

Context: As Trump administration tariffs roil supply chains and customers look to lower costs, the company's third-party manufacturing model provides flexibility to shift operations as needed, Chopra says.

What's next: The startup aims to double its workforce in the next six months.

Exclusive: Specialty chemicals startup Mstack targets $100M Series B

The startup has begun receiving inbound interest from investors and plans to close a deal by the end of the year.

Illustration of a test tube pouring into a hundred dollar bill

Mstack, a specialty chemicals startup, is targeting a $100 million Series B fundraise, CEO Shreyans Chopra tells Axios Pro exclusively.Why it matters: The Houston-based startup has begun receiving inbound interest from investors and plans to close a deal by the end of the year.

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Exclusive: Specialty chemicals startup Mstack targets $100M Series B

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