AI Meets Manufacturing: Basetwo Raises $16.5M CAD to Cut Costs and Boost Efficiency
Toronto-based Basetwo has secured a $16.5 million CAD ($11.5 million USD) Series A round to advance its AI-powered copilot designed for manufacturing engineers. The software-as-a-service (SaaS) startup aims to optimize large-scale chemical manufacturing by addressing inefficiencies in production, cutting energy costs, and enhancing process reliability.
The all-equity, all-primary round was led by Paris-based Axa Venture Partners (AVP), with participation from Glasswing Ventures, Deloitte Ventures, Global Brain Ventures, Shimadzu Corporation, Chiyoda Corporation, and UAE-based angel investors. Investors from AVP and Glasswing now hold board seats at Basetwo. This funding follows the company’s 2022 seed round and brings its total raised to $17.5 million USD.
AI Copilot for Smarter Manufacturing
Basetwo’s AI-driven platform aims to revolutionize industrial production by integrating physics and chemistry expertise into AI models. While traditional AI tools rely solely on historical data, Basetwo incorporates scientific principles from engineering handbooks and chemical databases to enhance predictive accuracy.
For pharmaceutical manufacturers, this means optimizing production parameters such as reactor temperatures and mixing speeds to scale new drug formulations efficiently. Given that generative AI is typically consumer-focused, Basetwo’s approach stands out by addressing complex engineering challenges with AI-driven automation.
“AI models struggle to understand fundamental physics and chemistry, which is critical for manufacturing,” said CEO Thouheed Abdul Gaffoor. “Our technology bridges that gap, making AI-driven optimization more reliable for industries like pharmaceuticals and chemicals.”
Expanding AI-Driven Industrial Optimization
With global supply chain disruptions and labor shortages continuing to affect manufacturing, companies are increasingly turning to AI to streamline operations. Deloitte reports that life sciences and biopharma firms are particularly investing in AI-driven R&D to improve success rates for new drug candidates.
Basetwo’s platform promises to:
✅ Reduce energy consumption and materials costs
✅ Cut manufacturing cycle times
✅ Enhance quality control in production
The company declined to name specific customers but confirmed deployments with major pharmaceutical and chemical manufacturers across North America, Europe, the UAE, and Japan.
Future Growth and Expansion
This latest funding round will support further development of Basetwo’s AI copilot and the introduction of AutoPilot, an autonomous control system designed to optimize plant operations without human intervention.
Basetwo was co-founded by Thouheed Abdul Gaffoor, Thamjeeth Abdul Gaffoor, Tawfeeq Abdul Gaffoor, and Kiefer Eaton. The company is headquartered in Toronto, with offices in the U.S. and UAE, and currently employs 20 people. It plans to expand its workforce by 50%, adding 10 new hires across product, engineering, and sales in Toronto, Vancouver, and Calgary.
“Canadian talent competes with the best globally, and with strong R&D incentives like SR&ED, Canada is an ideal place for deep-tech startups,” Gaffoor said.
As Basetwo continues to scale, its AI solutions could reshape manufacturing, delivering efficiency and sustainability to industries worldwide.
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