Basetwo Raises $11.5M Series A to Transform Chemical Manufacturing with Physics AI Platform

Basetwo, an AI platform for manufacturing engineers, today announced it has raised USD $11.5M in Series A funding led by AVP with participation from existing investor Glasswing Ventures, Deloitte Ventures, Global Brain Ventures, Shimadzu Corporation, Chiyoda Corporation, and prominent UAE angel investors via Qora71. The investment allows the company to accelerate its mission to revolutionize how pharmaceutical and chemical manufacturers optimize their production processes.

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Pharmaceutical and chemical manufacturers face significant challenges when scaling production from lab to commercial scale and optimizing existing processes for quality and efficiency. When launching new drug compounds or chemical formulations to market, manufacturers must precisely determine numerous production parameters — from reactor temperatures to mixing speeds — while maintaining strict quality standards. At the commercial scale, teams must continuously verify production performance, identify issues, and implement corrective actions to ensure optimal batch quality. Traditional machine learning approaches relying solely on historical data struggle with these complex manufacturing processes, as they can only learn from correlations rather than the underlying physics and chemistry engineers use to control and troubleshoot these systems. This technology gap leads to significant inefficiencies, with 20 cents of every dollar spent in manufacturing going to waste — a staggering global loss of $8 trillion annually.

Basetwo’s Physics AI platform uniquely combines fundamental chemical engineering principles with artificial intelligence to optimize pharmaceutical and chemical manufacturing processes. This results in an up to 40% improvement in cycle times and raw material usage while helping customers achieve a 25% improvement in product quality. The platform enables manufacturers to run virtual experiments and simulate process changes before implementation, significantly reducing the time and cost traditionally required to optimize production processes and eliminating the risks associated with live testing.

“Amid the excitement around generative AI, most applications have focused on consumer use cases using black box models that learn from data patterns and correlation rather than foundational knowledge and principles,” said Thouheed Abdul Gaffoor, CEO and Co-founder of Basetwo. “Manufacturing requires a fundamentally different approach, incorporating decades of engineering expertise and physics-based understanding of how chemicals and equipment interact. Our Physics AI platform enables manufacturers to optimize complex processes with powerful and explainable models.

The confidence of our investors in this Series A round is a testament to the transformative potential of our approach. We’re thrilled to have their support as we expand our capabilities and continue to empower manufacturers with cutting-edge solutions for the challenges of today and tomorrow.”

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The funding will accelerate the development of Basetwo’s AutoPilot technology for autonomous, real-time manufacturing control while expanding the company’s presence in the US, Japan, Europe, and the Middle East. Basetwo will continue growing its business development, AI, and software engineering teams to support increasing market demand.

“Basetwo is transforming how global manufacturers optimize their operations,” said Manish Agarwal at AVP. “Basetwo’s Physics AI platform addresses challenges critical for process efficiency and quality control, delivering measurable improvements that impact the bottom line. With their proven success across major pharmaceutical and chemical companies, Basetwo is positioned to become a leader in next-generation manufacturing optimization.”

Basetwo’s low-code platform empowers process engineers to leverage AI technology for critical use cases, such as quickly bringing new products to market and optimizing existing processes. The platform’s physics-based models provide interpretable insights that help engineers understand and control manufacturing systems while meeting regulatory requirements.

“Traditional manufacturing software was built for an era before cloud computing and modern AI,” added Gaffoor. “We’re excited to partner with global leaders across pharmaceuticals, chemicals, and consumer goods to usher in a new generation of intelligent manufacturing optimization that maximizes efficiency, quality, and sustainability.”

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