Bengaluru-based specialy chemical supply chain startup Scimplify raised USD 40 million (~INR 348 crore) in the Series B funding round. The funding round was co-led by Accel and Bertelsmann India Investment. Omnivore, UMI and 3one4 Capital also participated in the round. The company has raised USD 54 million in total. This brings the total funding to USD 54 million across seed and Series A rounds.
Scimplify Series B Round: New Capital, New Direction?
Scimplify will use the new capital to expand exports to the 16 countries it already serves and strengthen its presence in key industries like life sciences, crop sciences and industrial chemicals. Scimplify has a robust presence in markets like the US, Europe, Japan, New Zealand, UAE, Egypt, Vietnam, Jordan and Taiwan, and plans to expand further.
“We started Scimplify with the vision of bringing the massive power of highly specialized manufacturing capabilities in India to a global base of customers,” said Salil Srivastava, co-founder at Scimplify. “As global supply chains are shifting rapidly, customers are actively looking for reliable partners who can provide enterprise grade R&D and end-to-end solutions for their specialty chemical manufacturing needs.”
Full-Stack Specialty Chemicals Platform
Founded in mid-2023 by Salil Srivastava, Sachin Santhosh and Dheeraj Dhingra, Scimplify is a B2B fulfillment platform that provides end-to-end supply chain services for specialty chemicals. Scimplify integrates in-house scientific expertise with a network of over 200 specialized manufacturing plants across cost-efficient regions in India to offer a ready to use model where global buyers can leverage India’s production capabilities without setting up dedicated facilities.
The company’s proprietary platform ATOMS connects manufacturers with chemical suppliers, listing specialty chemicals from more than 5,000 factories run by over 200 manufacturers across 10 countries including India, China, Vietnam, Egypt and Japan. Scimplify also processes existing chemicals to make them cost effective and segregates suppliers based on geography, chemistry, capacity and compliance.
What the Investors See
Investors see that the global specialty chemicals market is shifting, where businesses are looking to diversify away from China due to geopolitical tensions and supply chain disruptions. Scimplify is filling that gap by offering cost-effective manufacturing solutions with regulatory compliance for the pharma, agro and personal care industries.
“The global supply chain for specialty chemicals is at a tipping point. Traditional manufacturing supply chains are not flexible enough for today’s geopolitical environment and end customer requirements,” said Rachit Parekh, Principal at Accel. “Scimplify is building an R&D led global manufacturing network that allows for flexibility and innovation.”
Scaling R&D and Manufacturing
Scimplify has been doubling down on its R&D with over 50 scientists in 2 labs. Looking to set up an office in the US and Japan and acquire chemical factories to expand capacity and serve regulated markets.
Already served over 600 customers worldwide and expect 40% of revenue to come from international markets in the next 12 months. As part of its growth plan, Scimplify is also upgrading its state-of-the-art R&D facility in Hyderabad to drive more product innovation.
Scimplify is in a growing industry and competes with Mstack, Atomgrid, Covvalent, Distil, and Elchemy. Mstack raised USD 40 million in Series A last year, co-led by Lightspeed and Alphawave and Elchemy raised USD 5.6 million from Prime Venture Partners.
Conclusion
With strong investor backing and a solid growth plan, Scimplify is set to become a global player in specialty chemical manufacturing. By leveraging India’s manufacturing expertise and cost advantage, the company will disrupt the traditional specialty chemicals supply chain and capitalize on global trade shifts.
The latest funding round highlights India’s growing importance in the global specialty chemicals market as companies look for alternative sourcing in an uncertain global landscape.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.