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Home»Waterloo»Alchemy’s Journey from Student Project to Industry Leader
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Waterloo

Alchemy’s Journey from Student Project to Industry Leader

July 16, 20265 Mins Read
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Alchemy’s Journey from Student Project to Industry Leader
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In less than ten years since its start as a student venture, Alchemy has hit a significant landmark: finishing a $13.7 million initial public offering (IPO) and starting to trade on the TSX Venture Exchange. This success reflects years of progress for a company that originated as a University of Waterloo capstone project and has now branched into global automotive and defense sectors.

Located in the heart of Waterloo region’s innovation hub, Alchemy shows how a startup can grow into a thriving global business with help from local talent. What began as a fourth-year capstone project for some Faculty of Engineering students-created to be a spray to stop frost on windshields-has transformed into a camouflage coating used by the Canadian Armed Forces.

 

“We focus on the practical applications of nanotechnology,” says Khanjan Desai (BASc ’13), co-founder and CEO of Alchemy. “With our complete product line currently available in the market, we are working on something no one else has done before: providing high-quality, easy-to-install windshield protection films all in one package.”

 

 Alchemy

Alchemy’s Exoshield windshield protection film being installed at the Guelph Detailing Company. Photo credit: Alchemy

Alchemy’s automotive solution for car owners features their “Endurance Class” nanoceramic coating, which offers windshield protection films that guard against stone chips and scratches. While working with nanoparticles for their Exo Shield line, the team found out that their products could interact with thermal infrared radiation-a technology used for military thermal camouflage. This discovery opened doors for Alchemy in the defense sector.

A growing partnership with the Canadian Armed Forces

In 2019, the Canadian Department of Research and Development Canada (DRDC) looked for technologies focused on managing thermal infrared signatures through its IDEa S program. Alchemy’s defense solution, using their “Crypsis Class” nanocomposite coating, was made to hide uniforms from detection in various operational settings. The company received a $1 million contract to further develop this technology specifically for integration into textiles.

Scientists integrating Alchemy’s nanocomposite coating into combat cloth and camouflage netting for field trials. Photo credit: Alchemy

“What we’ve seen over the last three years during the Ukraine war is that thermal cameras have made battlefields transparent; they’re inexpensive and widely available,” Desai explains. “Put one on a drone, and you’ve got an unmanned aircraft system flying overhead. Every soldier, vehicle, and military camp becomes visible within the thermal spectrum, making traditional camouflage ineffective.”

Alchemy created a multi-spectral camouflage platform using specialized nanoparticles designed to be integrated into fabrics so soldiers’ heat signatures are concealed in both mid-wave and long-wave infrared spectrums. The team intends to look into transforming this technology into an aerosol version suitable for broader use on military equipment and uniforms.

“We’ve been strongly supported by the Canadian Armed Forces through DRDC,” Desai mentions. “Alchemy went through several rounds of testing where we received valuable feedback from Jean Dumas, Canada’s leading expert in signature management. We scored 95 out of 100 on our solution during field trials and were encouraged to propose another contract aimed at bringing our technology closer to commercial readiness.”

Thermal image comparison of two prototypes

Thermal image comparison showing two individuals during daytime field trials; with Alchemy’s prototype on the right effectively masking heat signature visibility.

Alchemy’s prototype as seen in daylight

Alchemy developed a multi-spectral camouflage platform using specialized nanoparticles that can be integrated into textiles to conceal soldier’s heat signatures across mid-wave and long-wave infrared spectrums; shown here during daylight.

Evening field trial with Alchemy’s prototype

Evening field trial displaying Alchemy’s prototype; only exposed skin shows any visible heat signature.

Left: Thermal image comparison during daytime field trials showing two individuals; with Alchemy’s prototype effectively concealing heat signature visibility on the right side. Center: A view of Alchemy’s prototype under daylight conditions. Right: Evening trial illustrating how only exposed skin emits any visible heat signature when wearing Alchemy’s prototype. Photo credit: Alchemy

This past September 2025, Alchemy secured $6 million in funding aimed at speeding up development and commercialization efforts regarding its defense and automotive technologies which have already been tested by top defense organizations around.
The expansion of manufacturing capabilities within Canada was supported by investors including Name Silo Technologies, Pathfinder Asset Management, and Pembroke Management.

Delivering global solutions while keeping its roots in Waterloo region

This early part of 2025 saw Alchemy also receive $1.8 million from Ottawa via Fed Dev Ontario meant to enhance next-generation windshield protection films making products more accessible.

“Canada does an incredible job supporting innovation,” Desai shares.”The backing we get from Velocity along with universities combined with regional innovation centers allows companies like us greater capital efficiency concerning research & development processes. Government grants such as those provided through Fed Dev Ontario play key roles helping us continue growing locally.”

Around this time there are currently about five hundred active installers spanning fifty-seven countries who sell Exo Shield films. A portion involved manufacturing must take place outside Canada due needing specialized equipment unavailable here even though ingredients needed come straight outta home turf. Canadian federal funding will likely facilitate growth within Ontario increasing jobs while enhancing marketing strategies according To Desai.

The support plus resources provided through Waterloo played vital parts leading up toward success amongst early days. Despit challenges securing funds initially organisations like W. I. N. T & Veloctity helped provide workspaces essential allowing independence over time. Desi tries giving back employing students whenever possible once graduated.

“Having access Nanotechnology Engg alongside Chemical Engg programs proved beneficial recruiting opportunities hence why we’ve returned back towards these areas,” says desai.

If anything retaining presence here became crucial due supportive atmosphere Lab facilities technical staff alike. Team planning future expansions shifting larger location downtown Kitchener stay ahead competition providing necessary warehousing capabilities internally while expanding Defense branch overall operations moving forward!

Main Feature Image: Exo Shield installation carried out vehicle.(Photo credit : Alchemy )

The “Made By Waterloo:” series highlights innovative startups launched by University Of Waterloo alumni researchers who drive Canadas economy forward showcasing impact locally globally alike! Companies fostered within vibrant tech ecosystem yield prosperity attracting developing retaining talents fueling economic growth countrywide!!


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